UBS is wary of diminishing demand for CHF and recommends a 'tactical' long USD/CHF around current levels.
Separately analysts at the bank have previewed the Swiss National Bank policy meeting next week (Thursday 14 December), expecting the SNB to remain on hold. Market pricing is also expressing rate hike expected in December.
As part of its reasoning UBS point to comments from SNB Chairman Thomas Jordan saying that rate hikes would do little to combat the expected regulation-driven inflation increases. Jordan added that the Bank will continue to "monitor the development of inflation closely in the coming weeks" and that he'll maintain a medium-term orientation and not react "to every data surprise with a substantial change in policy."