The SNB is likely hoping now for EURCHF to stabilize around 1.10, notes UBS.
"Trading below parity right now one might conclude that such hopes are very optimistic, at least in the relatively short term. In fact, currency interventions might be required to keep the cross above the psychologically important parity level," UBS argues.
"The longer EURCHF trades below parity, the higher the danger that market participants further lose confidence in the SNB's ability to hold any kind of minimum level. The risk will also increase that any eventual move higher may be used by investors as a selling opportunity," UBS adds.
"More broadly, there might be a question on whether the franc will still be seen as a safe haven given an almost 15% drop in Swiss equity markets and the threat of liquidity driven dislocation on the FX and rates side. However, rather than being scared off by these issues, global investors might conclude that the franc was in fact the ultimate safe haven currency. After all, even a threat by the presumably mighty Swiss National Bank of 'unlimited' intervention had been powerless to prevent further appreciation," UBS concludes.
Copyright © 2015 eFXnews
Δεν υπάρχουν σχόλια:
Δημοσίευση σχολίου