Via Bloomberg
The SNB is not going to be too happy with the broad CHF strength and the move to safety from the GBP would provide the moves needed to rouse the SNB. The sharp fall in the GBP/CHF pair has implications for the SNB. In an no-deal Brexit or more woes for the GBP we could see the GBPCHF pair move down to 1.0000.Over the last three month the GBP has gained against the EUR (+6.5%) and the CHF(+10.2%).If the GBPCHF falls to parity, which ought to push the EUR/CHF down to 1.0370, then that should rouse the SNB to action.
The SNB doesn't not have to wait to a rate meeting to make policy decisions, so more pain for the GBP could drag the SNB into the ring again. What CHF pairs are you watching aside from the GBP and EUR crosses?
