Back
23 Apr 2013
Forex Flash: CHF Real flows remain very strong – Nomura
FXstreet.com (Barcelona) -Since the end of March, EUR/CHF has remained quiet and primarily range bound between 1.2230 and 1.2130. In recent months the pair has seemed to lack a major catalyst, and is now again drifting against the upper end of the range
According to Geoffrey Kendrick of Nomura, “Detailed data released by the SNB today showed continued buying of CHF related to bank flows (on both side of their balance sheets). Indeed, these data showed that for both January and February non-resident deposits in Swiss banks in CHF continued to increase (to now reach CHF136bn since the start of 2008).
He went on to add, “The second reason the Swiss franc remains strong is the continued CHF10bn a month current account surplus. In summary we estimate a positive basic balance of CHF33bn in Q2, and expect EUR/CHF to remain close to the floor for some time
According to Geoffrey Kendrick of Nomura, “Detailed data released by the SNB today showed continued buying of CHF related to bank flows (on both side of their balance sheets). Indeed, these data showed that for both January and February non-resident deposits in Swiss banks in CHF continued to increase (to now reach CHF136bn since the start of 2008).
He went on to add, “The second reason the Swiss franc remains strong is the continued CHF10bn a month current account surplus. In summary we estimate a positive basic balance of CHF33bn in Q2, and expect EUR/CHF to remain close to the floor for some time