Commerzbank’s strat team thinks the market overreacted a bit yesterday when the EUR/CHF rallied on comments that the SNB is ready to make use of negative depo rates if needed.
With EUR/CHF levels above 1.2060 the SNB doesn’t have to intervene, and now that EUR/CHF is trading close to 1.21 again there are likely to be even fewer reasons for the central bank to adjust monetary policy and cut rates at its meeting next Thursday. All those who sold the franc yesterday might be in for a disappointment next week, if not before then.
The post Commerzbank: Market bought EUR/CHF on old news appeared first on www.forextell.com.