5 Sep 2013
Flash: Appreciation pressure on CHF weakens - Nomura
FXstreet.com (London) - Strategists at Nomura noted that two years have passed since the SNB introduced a floor on EURCHF at 1.20 on 6 September 2011.
Key Quotes:
"Since the introduction of the floor, EURCHF has been trading slightly above it".
"Even though the SNB needed to boost its FX reserves significantly in mid-2012 to protect the floor, EURCHF has risen slightly since then, without increasing reserves".
"The CHF Exchange Market Pressure (EMP) index, a weighted average of changes in nominal EURCHF and FX reserves, clearly suggests that CHF appreciation pressure has been weakening since the introduction of an FX
floor".
"The pressure has typically been weak for the past year".
Key Quotes:
"Since the introduction of the floor, EURCHF has been trading slightly above it".
"Even though the SNB needed to boost its FX reserves significantly in mid-2012 to protect the floor, EURCHF has risen slightly since then, without increasing reserves".
"The CHF Exchange Market Pressure (EMP) index, a weighted average of changes in nominal EURCHF and FX reserves, clearly suggests that CHF appreciation pressure has been weakening since the introduction of an FX
floor".
"The pressure has typically been weak for the past year".