A short preview on the SNB decision to come later in the day
Goldman Sachs is arguing that the swissie's recent drop against the euro in March isn't going to mean that the SNB will change its stance or soften its rhetoric in its meeting later today, as the currency is still "highly valued".
Meanwhile, Christin Tuxen, chief currency analyst at Danske Bank says that "the cross is still far off the 1.20 level where we think the SNB will need to see it before shifting into 'exit' mode".
I've mentioned it several times before, the SNB is basically like the ECB - but one step behind. They will only move to normalise policy after the ECB does. A survey back in January by Bloomberg shows that the SNB is expected to tighten policy only in Q4 2019 - but that will still be highly dependent on the ECB's actions as well.
The Swiss economy has been rather steady lately and the last thing the SNB would want is to pull off another debacle in their policy management to disrupt that.
