How to trade on SNB? Hints from major banks
The Swiss National Bank will announce its policy decision at 07:30 GMT. The central bank is expected to keep its benchmark rate unchanged at -0.75%. Below you will find how the analysts recommend to trade on this event.
Morgan Stanley: Markets are pricing in the dovish SNB and a December rate cut, but this won’t happen. Sell CAD/CHF and AUD/CHF, buy CHF/JPY.
Barclays: The lack of volatility after Brexit and some improvement in Swiss economic figures removed the pressure on the SNB to act further easing monetary policy. The central bank’s meeting will be neutral for EUR/CHF.
Credit Agricole: Swiss franc is overvalued, so the SNB won’t be dovish. EUR/CHF will remain supported.