SNB may cut again!?

SNB Jordan

Each new day we assure that SNB’s move was ‘the right’ decision. Yes, you wish it is Mr.Jordan. According to Bloomberg, SNB may cut deposit rate to -1,50%, from -0,75% if the Swiss Franc goes to the ‘wrong’ direction’, or to be clear, if the Swiss Franc strengthened against the Euro. As I wrote about this before in February 08., SNB would like EUR/USD to the 1.10! We could see, that the Euro lose all over the market, but not against Swiss Franc. It’s obvious that ‘someone’ is holding on the way down, quess who that could be!? In February EUR/CHF reached 1.08 and last week had slip down a bit to 1.07, but Euro is holding very well against Franc. If we take a look at USD/CHF, we could see that the strong US dollar could erase entire SNB’s move soon! Last week USD/CHF ended at 0.9850, before SNB move the EUR/CHF floor, USD/CHF was at 1.0240. I wrote about that as well. Yes, removing the 1.2 floor was the right decision for someone who took a ‘few billions’ on that move! But we can see, that SNB’s move wasn’t the right decision for the Swiss economy.

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