USD/CHF and EUR/CHF enjoyed a bounce as risk aversion eased but continued uncertainty over the situation in the Ukraine suggests that any upward momentum will be limited. The fact that the largest economic impact from any worsening in tensions with Russia will be felt in the Eurozone highlights that life may become difficult once again for the Swiss National Bank as renewed safe haven inflows move into the country. Indeed the EUR/CHF floor at 1.20 may be tested over coming weeks. Data tomorrow will likely give further reason for the SNB to oppose CHF strength, with the annual rate of CPI inflation set to remain very low.
Reuters Business News- Global shares cruise to three-month highs, dollar shows the strain
- Qatar Petroleum's $19 billion LNG vessel order boon for South Korean shipbuilders
- China auto sales growth seen for second straight month, boosting recovery hopes
- Geely's Polestar plans China showroom expansion to compete with Tesla: sources
- Oil prices rise before OPEC+ meeting about extending output cuts
- Embraer seeks business partners but not a repeat of the Boeing deal
- Australia's Woolworths to reward over 100,000 staff with shares for virus efforts
- China buys U.S. soybeans after halt to U.S. purchases ordered: sources
- Virgin Australia administrator picks Bain, Cyrus as final bidders
- French Finance Minister: Renault loan not signed yet, but should be soon
CHF pressures
March 6, 2014 — Mitul KotechaShare this blog
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