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28 Jan 2015
SNB likely to accommodate monetary policy further – Nomura
FXStreet (Barcelona) - The Research Team at Nomura feels that CHF is extremely overvalued at the moment and with deflation worsening in Switzerland the SNB might be compelled to accommodate monetary policy further.
Key Quotes
“Even though we see additional downside risks for EURCHF in the near future, we judge CHF is now extremely overvalued. As deflation worsens in Switzerland, the SNB is likely to accommodate monetary policy further, while CHF flows will be less CHF positive.”
“We judge EURCHF is now bottoming and expect EURCHF to recover 1.05 by end-December.”
“We keep our EURSEK and EURNOK forecast unchanged for now. In the near future, expectations for monetary easing by Riksbank and Norges Bank should limit upside room for SEK and NOK against EUR, but EURSEK and EURNOK depreciation looks set to accelerate in H2 2015.”
Key Quotes
“Even though we see additional downside risks for EURCHF in the near future, we judge CHF is now extremely overvalued. As deflation worsens in Switzerland, the SNB is likely to accommodate monetary policy further, while CHF flows will be less CHF positive.”
“We judge EURCHF is now bottoming and expect EURCHF to recover 1.05 by end-December.”
“We keep our EURSEK and EURNOK forecast unchanged for now. In the near future, expectations for monetary easing by Riksbank and Norges Bank should limit upside room for SEK and NOK against EUR, but EURSEK and EURNOK depreciation looks set to accelerate in H2 2015.”