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15 Jan 2015
Winners and losers on SNB - SG
FXStreet (Barcelona) - Kit Juckes, chief currency analyst at Societe Generale explained that the SNB decision to remove the EUR/CHF 1.20 floor will lead to EUR/CHF volatility as the market tries to find a new equilibrium.
Key Quotes:
"And as the SNB tries different means (USD/CHF intervention, negative rates, possibly further measures including captial controls down the line?) to stem the CHF gain. But more broadly, this move sees a major buyer of the Euro leave the building and opens the way for further/faster EUR weakness".
"It will trigger further broad-based dollar strength as a result and this in turn has already been reflected in a revival of risk aversion (and increase in market violability). Volatility, USD, JPY and Gold are ‘winners'. The Euro, EM currencies, and Swiss exporters (and tourist industry) are losers".
Key Quotes:
"And as the SNB tries different means (USD/CHF intervention, negative rates, possibly further measures including captial controls down the line?) to stem the CHF gain. But more broadly, this move sees a major buyer of the Euro leave the building and opens the way for further/faster EUR weakness".
"It will trigger further broad-based dollar strength as a result and this in turn has already been reflected in a revival of risk aversion (and increase in market violability). Volatility, USD, JPY and Gold are ‘winners'. The Euro, EM currencies, and Swiss exporters (and tourist industry) are losers".