UBS: Swiss franc energy more likely to maintain even when SNB cuts charges again under zero

The Swiss franc could maintain agency even when the Swiss Nationwide Financial institution (SNB) had been to chop charges again into damaging territory, in accordance with UBS World Wealth Administration. The franc stays the world’s most popular safe-haven foreign money, and in a “risk-off” surroundings damaging charges alone wouldn’t be sufficient to weaken it.

UBS famous that such a coverage shift would solely be thought-about underneath extreme situations—reminiscent of a pointy deterioration within the world or European macro outlook, or a significant narrowing of the interest-rate hole with the European Central Financial institution that triggered sustained franc energy. Within the meantime, the foreign money’s haven standing is more likely to dominate, cushioning it in opposition to rate-driven draw back stress.

This text was written by Aaron Cutchburt at investinglive.com.