SNB’s dovish stance likely to continue into new year - Nomura

The SNB has kept its policy unchanged yesterday as widely expected and the downward revisions to its inflation outlook and a less cautious view on the housing market suggest the SNB’s dovish stance will continue into 2017 suggests analysts at Nomura.

Key Quotes

“The Bank is likely to have intervened in the FX market aggressively in November, and ahead of key European political events, the Bank is likely to continue to intervene in the market next year. EUR/CHF has been trading heavily, but the global reflation trend and higher yields are likely to be CHF negative in the medium term. We expect EUR/CHF to recover gradually to 1.10 in 2017.”