Goldman Sachs taregt 1.16 iin GBP/CHF, with a stop at 1.10
- Most importantly in our view, the SNB has reported that it intervened to the tune of CHF 0.3bn in Q1. We find that notable because it demonstrates the SNB's fairly active currency policy, and it reveals that the Bank is more willing to “fine tune” currency moves than its G10 counterparts
- Even after the end of negative interest rates, intervention has remained an important and often-used tool for the SNB. Taken together, this makes us more comfortable with CHF funding now on a tactical basis than we otherwise would be with growth fears swirling and geopolitical tensions still simmering”
GS add that while Swiss interest rates will remain low rates in the UK, while falling, will remain one of the highest in the G10 by year end.
'Carry' lives on it seems.
