OCBC strategists Sim Moh Siong and Christopher Wong note that recent equity market turbulence has coincided with further Swiss Franc gains, with EUR/CHF consolidating well below 0.92.
OCBC strategists Sim Moh Siong and Christopher Wong note that recent equity market turbulence has coincided with further Swiss Franc gains, with EUR/CHF consolidating well below 0.92. The bank warns that persistent CHF appreciation raises the risk of inflation undershooting the Swiss National Bank’s forecasts and could eventually challenge its tolerance for currency strength, potentially prompting a softer policy stance similar to recent Riksbank concerns over SEK.
Franc gains raise policy dilemma'Last week's equity market turbulence coincided with further gains for the CHF, which is consolidating well below 0.92 in EURCHF.''Further CHF gains raise the risk of additional downside surprises relative to the SNB’s inflation forecasts, even as last week's CPI was in line with the 0.1% YoY 1Q26 projection.''This could potentially challenge the SNB’s recent tolerance for currency appreciation, even if the bar for returning to negative rates remains high.''Dovish Riksbank minutes—highlighting SEK strength as a downside inflation risk—underscore the possibility that the SNB could also soften its stance if persistent CHF appreciation leads to further inflation undershoots.'
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
4 Standing Exercises That Restore Carrying Strength Better Than Gym Workouts After 40Your ultimate source for expert nutrition tips and health advice, covering wellness, healthy recipes, cooking hacks, food news, style trends and shopping.
Read more »
4 Exercises Women Over 55 Should Do Each Morning to Restore Upper-Body StrengthYour ultimate source for expert nutrition tips and health advice, covering wellness, healthy recipes, cooking hacks, food news, style trends and shopping.
Read more »
5 Daily Exercises That Rebuild Upper-Body Strength Faster Than Weight Machines After 50Your ultimate source for expert nutrition tips and health advice, covering wellness, healthy recipes, cooking hacks, food news, style trends and shopping.
Read more »
DANIEL HOFFMAN: What my family learned from a 12-year-old about inner strengthFox News Channel offers its audiences in-depth news reporting, along with opinion and analysis encompassing the principles of free people, free markets and diversity of thought, as an alternative to the left-of-center offerings of the news marketplace.
Read more »
USD/CHF steadies near 0.7700 as soft Swiss CPI supports SNB dovish outlookUSD/CHF remains steady after opening above its previous close, trading around 0.7690 during the early European hours on Monday.
Read more »
GBP/JPY Price Forecasts: Tests resistance at 209.60 as Yen strength wanesThe Pound (GBP) is trading higher against the Japanese Yen (JPY) for the second consecutive day on Monday.
Read more »