News Of UBS Expectation Of CHF Hike By 25 Bps On Thursday Sends USDCHF Below Parity
UBS came out with a report expecting a hike by the SNB at their Thursday meeting by 25 bps to 50 bps. While most other banks expect no action from Phillip Hildebrand (who was last heard screaming in abject futility at his FX trading desk) one would think the Swiss bank has a better sense than most of what is happening in its home country. The result is an immediate collapse in the USDCHF pair to below parity. The flight to quality is on in full mode as stocks continue to be decoupled from everything. With nobody trading equities, this is to be expected.