As reported by economists HSBC, Declining “safe haven” appeal coupled with a moderate 50 basis point hike by the Swiss National Bank (SNB) should weaken the CHF in the near term.
CHF’s ‘safe haven’ appeal may wane
“The safe-haven appeal of the CHF could start to wane as many of the Eurocentric risks – notably around periphery debt – appear to have bottomed out along with European data and a possible turnaround in European inflationary pressures. .”
“The SNB is expected to apply a 50 basis point hike, bringing the rate to 1.00%, at its meeting on December 15. But inflation has never been as excessive in Switzerland as elsewhere, and we believe the SNB will leave rates flat at 1.00% after the December meeting. Any sign that the cycle of increases is nearing its end will be a disappointment for the rate market.”
“We expect the CHF to weaken against the USD in the short term“.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
