Back
16 Jan 2015
SNB shocker to support USD, volatility - SocGen
FXStreet (Bali) - The SNB’s decision to ditch the EUR/CHF peg supports both the US Dollar and volatility going forward, notes the FX Research Team at Societe Generale.
Key Quotes
"The SNB’s decision to ditch the EUR/CHF peg has added to pressure on the Euro ahead of the anticipated announcement of QE at next week’s ECB meeting."
"It also supports the dollar, and as cross-currents affecting currency markets multiply, it will continue to support volatility."
"That in turn helps the yen, where shorts have been squeezed this month. At some point EUR shorts will get squeezed too, perhaps after the ECB has made its move, but that will represent only a speed-bump, slowing the downtrend’s progress temporarily."
Key Quotes
"The SNB’s decision to ditch the EUR/CHF peg has added to pressure on the Euro ahead of the anticipated announcement of QE at next week’s ECB meeting."
"It also supports the dollar, and as cross-currents affecting currency markets multiply, it will continue to support volatility."
"That in turn helps the yen, where shorts have been squeezed this month. At some point EUR shorts will get squeezed too, perhaps after the ECB has made its move, but that will represent only a speed-bump, slowing the downtrend’s progress temporarily."