There have been some growing concerns about the recent expansion of the SNB’s balance sheet. It now stands 30% larger than when the EURCHF peg was abandoned two years ago.
However, even though last month revealed the first reduction in assets in a year, there does not appear to be any change in stance.
The SNB will get some help in easing conditions as inflation, which has been below zero for the last five months, moves back into positive territory this year.
All told the currency should depreciate to 1.09 by the end of the year versus the EUR.
Copyright © 2017 CIBC, eFXnews™Original Article
