Summary:
Goldman Sachs discusses CHF outlook and maintains a bullish bias over the medium-term. ‘The SNB surprised markets with a 50bp hike last week and a change to its intervention framework. The move confirms our bullish view on the Franc and is the strongest evidence yet of our “Reverse Currency Wars” thesis-the era of targeting weaker exchange rates is over (and accelerating through the year) is probably too high relative to the SNB’s inflation aim. The Bank’s research and our own have found that a 1%appreciation in the currency can lower inflation by about 0.1-0.2%. Taken together, we think the Bank is likely to target about a 5% appreciation in the real exchange rate, which would put it around the post-2015 average,” G “With this in mind, we are rolling forward
Topics:
Eamonn Sheridan considers the following as important: Central Banks, Featured, Feed, newsletter
This could be interesting, too:
Goldman Sachs discusses CHF outlook and maintains a bullish bias over the medium-term. ‘The SNB surprised markets with a 50bp hike last week and a change to its intervention framework. The move confirms our bullish view on the Franc and is the strongest evidence yet of our “Reverse Currency Wars” thesis-the era of targeting weaker exchange rates is over (and accelerating through the year) is probably too high relative to the SNB’s inflation aim. The Bank’s research and our own have found that a 1%appreciation in the currency can lower inflation by about 0.1-0.2%. Taken together, we think the Bank is likely to target about a 5% appreciation in the real exchange rate, which would put it around the post-2015 average,” G “With this in mind, we are rolling forward
Topics:
Eamonn Sheridan considers the following as important: Central Banks, Featured, Feed, newsletter
This could be interesting, too:
Connor O'Keeffe writes Is the Violence in Haiti a Preview of a Libertarian Society?
Douglas French writes Tapping 401ks to Pay the Bills
Marc Chandler writes Dollar Extends Gains Against the Yen but Broadly Firmer Ahead of the FOMC
Grey Haneberg writes Reimagining Public Safety – The Case for Privatizing Security
Goldman Sachs discusses CHF outlook and maintains a bullish bias over the medium-term.
|
Tags: central-banks,Featured,newsletter