FX intervention remains a useful tool for the SNB – Danske Bank

FXStreet (Edinburgh) - Christin Tuxen, Senior Analyst at Danske Bank, assessed the recent move by the SNB following the Greek developments.

Key Quotes

“SNB’s Jordan was out yesterday saying the SNB had intervened to weaken CHF early Monday”.

“Crucially, the SNB is largely left without any effective tools to fight CHF inflows in the present situation”.

“We do not expect a new floor for EUR/CHF, as the SNB has proved its distaste for substantial additions to its balance sheet from here”.

“While a rate cut remains a possible option, first line of defense against CHF strength remains intervention”.