Reaction to the SNB rate decision earlier by Christin Tuxen, chief currency analyst at Danske Bank
The SNB held rates steady and pretty much did not change anything it its language portrayal. The only thing it did was adjust inflation forecasts to the downside slightly. Mike had the decision when it was released here.
Anyway, Tuxen says that the SNB's similar rhetoric from the December meeting on a "highly valued" swissie should give support to EUR/CHF as it confirms that the central bank is in no hurry to exit its easing policy.
She argues that the SNB is waiting for further help on the currency side from the ECB as they look to normalise monetary policy in the near future - before the SNB does.
On that front, she says that "this should support a continued move higher in EUR/CHF in the coming months".
Tuxen also had some comments before the rate decision here. But her comments here is something that I'm not disagreeing with as it is pretty much what majority of the market sees when it comes to the SNB and the swissie.
