The SNB is going to cut, the Swiss bank says
Credit Suisse in its weekly tactical FX pick to clients:
"Our view is that the SNB will still cut this Thursday, most likely by 25bp to -1.00bp. Although Draghi did not deliver to market expectations, our Swiss Economic Research team still believes that it will be important for the SNB's credibility to respond to the ECB cut, especially when domestic data are so weak," Credit Suisse projects.
"The SNB has itself fueled expectations of a cut by insisting that it introduced the negative interest rate to "partially restore the traditional differential between interest rates on EUR and CHF." Rates market pricing has moderated from around 23bp to 8bp, and Bloomberg consensus is for no cut," Credit Suisse adds.
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