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Credit Agricole: Scope for aggressive SNB actions - eFXnews

FXStreet (Łódź) - The eFXnews team remark that Credit Agricole sees the SNB considering easing monetary policy further in response to ECB implementing new measures last week.

Key quotes

"Rising expectations of the SNB considering a more dovish monetary policy stance as well as rising risk appetite have been keeping the CHF under pressure, in particular versus commodity currencies such as the AUD and NZD."

"In the weeks ahead we anticipate further currency weakness. It cannot be excluded that the SNB will indeed consider additional policy measures in reaction to the ECB’s aggressive monetary policy stance."

"This is especially true should downside risks to the 1.20 EUR/CHF currency floor rise."

"While the SNB would not hesitate to intervene anew, negative interest rates may come back into question."

"In terms of data, investors’ focus shifts to next week’s CPI release. As there is little room for a surprise, we expect only limited currency impact."

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