By FXEmpire.com
Analysis and Recommendations:
The EUR/CHF remains locked in their ongoing battle, holding at 1.2010 dead center of their trading range. This pair continues their private agenda, between euro bears and the SNB.
The Swiss National Bank on Thursday called on the nation’s two largest banks, Credit Suisse and UBS, to add to their loss-absorbing capital in order to be prepared in case the Eurozone debt crisis deepens further.
Presenting the central bank’s Financial Stability Report, SNB Vice Chairman Jean-Pierre Danthine said that while both banks had only moderate exposures to peripheral countries, loss-absorbing capital “is
still below the level needed to ensure sufficient resilience.”
If the debt crisis were to worsen, “a general deterioration of economic and financial conditions could be expected,” Danthine said. “In such a case, the potential losses for the banks would extend to a
significant portion of their credit and trading positions.”
Danthine said that at the end of March, loss-absorbing capital was 2.7% of the net balance sheet at UBS and 1.7% at Credit Suisse.
The SNB vice chairman recommended that UBS “continue with the capital strengthening process – including, in particular, pursuing a policy of dividend restraint.” He said Credit Suisse “should accelerate the process and take all action necessary to expand its loss-absorbing capital base significantly during the current year.”
FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.
Economic Data June 14, 2012 actual v. forecast
|
Date |
Time |
Event |
Actual |
Forecast |
Previous |
|
Jun. 14 |
05:30 |
Industrial Production (MoM) |
-0.2% |
0.2% |
0.2% |
|
08:30 |
Interest Rate Decision |
0.00% |
0.00% |
0.00% |
|
|
08:30 |
SNB Chairman Thomas Jordan speaks |
||||
|
09:00 |
ECB Monthly Report |
||||
|
10:00 |
CPI (YoY) |
2.4% |
2.4% |
2.4% |
|
|
10:00 |
Core CPI (YoY) |
1.6% |
1.6% |
1.6% |
|
|
13:30 |
Core CPI (MoM) |
0.2% |
0.2% |
0.2% |
|
|
13:30 |
CPI (MoM) |
-0.3% |
-0.2% |
0.0% |
|
|
13:30 |
Current Account |
-137.3B |
-132.3B |
-118.7B |
|
|
13:30 |
Initial Jobless Claims |
386K |
375K |
380K |
|
|
13:30 |
Continuing Jobless Claims |
3278K |
3269K |
3311K |
|
|
13:30 |
CPI (YoY) |
1.7% |
1.8% |
2.3% |
|
|
13:30 |
Core CPI (YoY) |
2.3% |
2.2% |
2.3% |
Upcoming Economic Events that affect the CHF, EUR, GBP and USD
|
Date |
Time |
Currency |
Event |
Previous |
|
Jun 15 |
8:30 |
GBP |
-8.6B |
|
|
12:30 |
USD |
17.1 |
||
|
13:00 |
USD |
36.2B |
||
|
13:15 |
USD |
79.2% |
||
|
13:15 |
USD |
1.1% |
||
|
13:55 |
USD |
79.3 |
Click here to read EUR/CHF Technical Analysis.
Originally posted here
