SNB’s Schlegel: Economic slowdown in Switzerland cannot be ruled out

• Economic slowdown in Switzerland cannot be ruled out.
• Trade policy situation is creating high uncertainty for all countries, including Switzerland.
• Price stability cannot prevent trade policy related uncertainty, but still very important.
• Trade policy could fragment global economy.
• Main instrument is interest rate, but we can also use forex interventions to influence monetary conditions.

The central bank is certainly not happy with the Swiss Franc strength. This is a greenlight for more CHF weakness barring risk-off flows.

This article was written by Giuseppe Dellamotta at www.forexlive.com.