Econ min being headlined a short while ago by Bbg from an interview with NZZ (in english from google translate so may lose some accuracy)
I’d imagine they’re still trying to gauge the fall out from last week’s SNB action
- current swiss franc rate has no basis in real economy
- no one knows how swiss franc will develop
- uncertainty over franc rate may last for months
Make him right on those last three
Where do you see the “real” exchange rate?
Until the SNB decision of purchasing power parity was significantly higher than 1 franc 20. The present route is not real economically justified, and 1 franc 10 would be from this point of view certainly too low. But that’s the theory. Fact: The stress on the economy is great. The concerns of enterprises must be taken seriously. Many had last finally ground under their feet. They had fought back with all his strength a margin could invest again. Now they are thrown back to square one. The shock is particularly severe this time
This question was asked as a follow up to one which cites the fin min stating at the w-e that Swiss companies could get used to a manageable EURCHF rate of 1.1000 which I reported here
USDCHF 0.8778 having retreated frrom 0.8807 highs
EURCHF 101.60 near session lows with decent resistance at 1.0250-60 still be to breached again
Schneider Ammann – CHF uncertainty may last for months
