Forex Flash: SNB reports drop in reserves – BBH
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EUR/CHF
FXstreet.com (Barcelona) - Brown Brothers Harriman analysts note that the SNB reported its FX reserves for October today.
Reserves fell to CHF 424.4bln from CHF429.5bln, the first monthly drop since February. They believe that the changes are due solely to valuation effects. They note that EURCHF has traded above the 1.20 floor during last month and did not necessitate any SNB intervention. With Swiss CPI for October coming in as expected at -0.2% YoY and -0.4% for September, the lower deflationary risks and EURCHF above 1.20 are welcome news for Switzerland, however they suspect that policymakers are breathing any sighs of relief just yet.
Reserves fell to CHF 424.4bln from CHF429.5bln, the first monthly drop since February. They believe that the changes are due solely to valuation effects. They note that EURCHF has traded above the 1.20 floor during last month and did not necessitate any SNB intervention. With Swiss CPI for October coming in as expected at -0.2% YoY and -0.4% for September, the lower deflationary risks and EURCHF above 1.20 are welcome news for Switzerland, however they suspect that policymakers are breathing any sighs of relief just yet.
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