JPMorgan, Pictet Defy Consensus to Bet on More Swiss Franc Gains
1 month ago

JPMorgan, Pictet Defy Consensus to Bet on More Swiss Franc Gains

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-- Big banks and investors including JPMorgan Chase & Co., Citigroup Inc. and Pictet Asset Management are bullish on the Swiss franc ahead of this week’s central bank meeting, defying the market consensus for a weaker currency. “The extreme dovishness of the SNB has not done anything to limit the Swiss franc’s outperformance,” said Daniel Tobon, head of G10 FX strategy at Citigroup. “If the Swiss economy is solid and develops well without inflationary pressure, a regular appreciation over time of the Swiss franc is perfectly fine for the SNB,” said Greg Hirt, chief investment officer of multi-asset strategies at AllianzGI. “In an environment where there are growing risks of a global trade war, European weakness, and political fragmentation, you play it safe with the Swiss franc,” said Luca Paolini, chief strategist at Pictet.

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SNB Stayed Out of FX Markets Despite Third-Quarter Franc Rally
2 weeks, 1 day ago

SNB Stayed Out of FX Markets Despite Third-Quarter Franc Rally

Live Mint  

-- The Swiss National Bank continued to refrain from significantly influencing the franc in the third quarter, even as the currency saw a rally triggered by geopolitical turmoil. Switzerland’s central bank bought foreign exchange worth 728 million francs from July to September after even smaller purchases in the previous two quarters, according to data on Tuesday. This suggests that even …

SNB Is Edging Toward Zero Rate in Tussle With Franc Speculators
1 month ago

SNB Is Edging Toward Zero Rate in Tussle With Franc Speculators

Live Mint  

-- Switzerland’s two-year stint of positive interest rates is about to inch closer to a potential end with the central bank’s likely move to cut borrowing costs this week. Either way, the decision will use up precious ammunition for a central bank whose rate is already one of the world’s lowest, showcasing the quandary for Swiss policymakers trying to prevent …

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