1Finance

SNB, BoE, RBNZ, EUR Correction, Don't Sell CHF For Now

What we’re watching:

FX Focus – Don’t sell the franc…for now: unstable risk sentiment and limited scope of the SNB turning more aggressive next week may trigger further franc upside risk, in particular versus the AUD.

• USD– Retail sales will be the last important data release ahead of the December rate announcement.
• GBP – A reiteration of the dovish language from the last inflation report as part of next week’s BoE announcement could trigger fresh GBP-selling. (for more on GBP, see here)
• CHF – We see little scope of the SNB easing monetary policy next week, especially as EUR/CHF has been well supported of late.
• NZD – The RBNZ may ease monetary policy further next week, a move that is not fully priced in. We see renewed NZD downside risk.
• AUD – Next week’s employment release is unlikely to have a major impact on rate expectations. The main focus should be on China.

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