SNB’s Danthine says ECB QE likely to make CHF cap defence more difficult

• CHF cap at 1.2000 vs EUR must remain pillar of monetary policy

Basically because they’ve got little other option in real terms.

SNB vice chairman Jean-Pierre Danthine being quoted from an interview with Swiss broadcaster RTS ( not Reuters) and stating the obvious

When asked whether ECB QE could make CHF cap defence more difficult he replied ” It’s very possible”

What remains to be seen is whether their pre-emptive strike on Dec 18 to impose negative rates will be enough

EURCHF unfazed at 1.2009 still but hovering down here suggests they have a battle on their hands still

Danthine- ECB QE makes CHF cap protection more difficult