In the wake of the central bank warning on the potential for a Franc correction, that emerged un NY yesterday, the CHF has traded a tight bias.
SNB Board member-designate Thomas Jordan noted in a local speech that he felt the Franc could undergo an abrupt revaluation at some point in the future should "the exchange rate developments not correspond to fundamental data" while on the subject of Swiss rates he is quoted as saying "the Swiss National Bank's series of interest rate increases is not over" but the "need to act to cut off inflationary pressures is decreasing".
The comments highlight little we did already know in that the SNB is worried over the weakness of the Swissie and that we are in the middle of a gradual tightening/normalization cycle. Thus far cross sales have impacted USD/CHF intraday but 1.2135/65 has traded on the wide, more offers are noted into 1.2180.
Into North American trading and the Fed's Lacker, Plosser & Geithner are on the roster ahead of the weekend. On the data front, US February Home Sales numbers are due for release at 14:00 GMT with 6.3Mn forecast.
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