Archived IMT (2010.03.18)

SNB Policy Board Member Jean-Pierrre Danthine to make his first major policy speech as the newly-appointed member of the SNB board today (no time specified). Part of the reason to the SNB silence in the face of the collapsing EURCHF to 1 year lows is been the intensity of the selloff in EUR, which the SNB deem to be out of its control. Any intervention would therefore render the SNB intervention futile. But considering our expectations for $1.32 EURUSD and stabilizing USDCHF above 1.05, this may help support EURCHF above 1.4423. Considering latest strength in CAD and CHF, we note that CADCHF surges to a 2-week high of 1.0487. A breach above 1.0517 would be the highest since October 2008. USDCAD traders will attempt to take out USDCAD 1.0050 into parity as long as the Fed does not sound out any hawkish remarks and the Bank of Canada/Canadian Fin Min refrains from talking down loonie. Ashraf is on travel therefore frequence of updates will be less than usual.