Forex Flash: CHF, not JPY has been the weakest currency this week – BBH
FXstreet.com (Barcelona) - Brown Brothers Harriman analysts note that the Swiss Franc, not the Yen, has been the weakest currency this week, falling roughly 2.25% against the dollar. Against the Swiss franc, the Euro climbed to its highest level since May 2011.
They see that negative interest on Franc deposits and some talk of SNB being under pressure from Swiss Industry to raise its Euro floor to 1.2500 appears to have been the hook for leveraged participants, who are thought to be the main drivers of the price action. The team are expecting the SNB to neither raise the Euro floor, nor unwind some of the reserves it has accumulated. The SNB does not have to do a thing. The recent 5 cent Euro rise has come to it very cheaply.
They see that negative interest on Franc deposits and some talk of SNB being under pressure from Swiss Industry to raise its Euro floor to 1.2500 appears to have been the hook for leveraged participants, who are thought to be the main drivers of the price action. The team are expecting the SNB to neither raise the Euro floor, nor unwind some of the reserves it has accumulated. The SNB does not have to do a thing. The recent 5 cent Euro rise has come to it very cheaply.
Free Annual Reports
http://sp.fastclick.net/ad/tr/10858-64082-15546-0?mpt=c52997110a5023ddf17108b07ada5127
