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16 Jan 2015
SNB scrapping its CHF floor might boost USD in short-term – OCBC
FXStreet (Barcelona) - According to OCBC Bank, SNB removing its CHF floor might have implications on other the FX space, expecting USD to strengthen against most currencies in the short-term.
Key Quotes
“Going ahead, the SNB has effectively acknowledged the inherent risk to the EUR with the ECB meeting next week, and this will likely exacerbate the bearish overtones attached to the common currency. With a stalwart like the SNB acquiescing on the currency front, the implications however may extend beyond the EUR and the CHF, with the greenback now likely to flex itself to a greater degree in the short term against currencies with compliant (read: dovish) central banks.”
Key Quotes
“Going ahead, the SNB has effectively acknowledged the inherent risk to the EUR with the ECB meeting next week, and this will likely exacerbate the bearish overtones attached to the common currency. With a stalwart like the SNB acquiescing on the currency front, the implications however may extend beyond the EUR and the CHF, with the greenback now likely to flex itself to a greater degree in the short term against currencies with compliant (read: dovish) central banks.”