19 Jan 2015
Is the SNB losing credibility? – BTMU
FXStreet (Edinburgh) - The recent move by the SNB could question the credibility of the central bank, according to Derek Halpenny, Head of GMR at BTMU.
Key Quotes
“SNB President Jordan warned over the weekend that the SNB could still intervene in the foreign exchange market again”.
“Of course, the words of the SNB may not have high credibility value at present but when the dust settles speculative short franc positions may slowly build again versus the dollar”.
“The deepest negative interest rate in the world, the threat of intervention, and a possible period of recession should all work against the franc”.
“Still, appetite for re-establishing franc shorts may be hesitant initially given the wings of this ‘black swan’ event may flutter for a while yet”.
Key Quotes
“SNB President Jordan warned over the weekend that the SNB could still intervene in the foreign exchange market again”.
“Of course, the words of the SNB may not have high credibility value at present but when the dust settles speculative short franc positions may slowly build again versus the dollar”.
“The deepest negative interest rate in the world, the threat of intervention, and a possible period of recession should all work against the franc”.
“Still, appetite for re-establishing franc shorts may be hesitant initially given the wings of this ‘black swan’ event may flutter for a while yet”.