Credit Suisse on Swiss National Bank FX intervention - more risk in EUR/CHF
Via the folks at eFX, Credit Suisse discusses CHF outlook and sees scope for 2-way risks in the near-term:
"We believe that the SNB sold CHF 583 million worth of FX reserves in February. A small amount compared to a total of CHF 934 billion. However, it appears that the SNB shifted reserves in March as well. These sales should not be seen as a tightening of monetary policy but as an attempt to defuse the tensions with the US in light of the Treasury currency manipulator label"
"Nevertheless, we believe this move introduces more two-way risk in EURCHF from here, keeping FX vols supported"
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