Swiss National Bank Chair Jordan threatened FX intervention!

A couple of posts from Tuesday ICYMI while Powell was hogging the spotlight:

ECB Knot: ECB can be expected to keep raising rates for quite some time after March

ECB can be expected to keep raising rates for quite some time after March

And, SNB Chairman: We cannot rule out that we will have to tighten monetary policy again

We can use interest rates but also sell foreign currencies to get the right monetary conditions

Barclays Research discusses CHF outlook and targets EUR/CHF around 0.97, 0.97, 0.98, and 1.00 by end of Q1, Q2, Q3, and Q4 of next year respectively.

The talking heads at the US Federal Reserve have pivoted to talking about how high rates will go before they top out as against how quickly they will rise.

Swiss National Bank monetary policymaker Andrea Maechler is speaking at 1130 GMT, at an event titled: After the interest rate change: high inflation, rising interest. How will it affect the Swiss economy?

Goldman Sachs maintains a bullish bias on CHF going into this week’s SNB policy meeting.

The SNB announcement is due on Thursday at 0730 GMT. -This in brief via Standard Chartered:expect SNB to hike by 100bpStan Chart were at +50bp but have ramped their expectation much higher.

The SNB policy decision is due on Thursday. Via MUFG Bank:CHF has been the top performing G10 currency so far this month as it has strengthened sharply against both the EUR (+2.2%) and USD (+1.5%). It has regained upward momentum against our equally-weighted basket of other G10 currencies after a period of consolidation at higher levels between July and August.

This via the folks at eFX.

Credit Agricole CIB Research argues that it would be premature for the SNB to resume its intervention against CHF strength around current levels.

Swiss National Bank President Thomas Jordan spoke at the Federal Reserve’s annual Jackson Hole symposium on Saturday.“Structural factors such as the transition to a greener economy, rising sovereign debt worldwide, the demographic transition and ultimately also the fact that globalization appears to have peaked — at least temporarily — could lead to persistently higher inflationary pressure in the coming years”

On Saturday at the Jackson Hole symposium there will be speakers from the European Central Bank, Swiss National Bank and Bank of Korea.

“We expect the SNB to hike by 50bp again in September and December to curtail underlying inflation pressures bringing the policy rate to 0.75%. With the SNB broadly following the ECB, we see relative rates as an inferior driver for the cross,” Danske notes.

Goldman Sachs discusses CHF outlook and maintains a bullish bias over the medium-term.