Archived IMT (2009.09.16)

Tomorrow's monetary policy decision from the Swiss National Bank (12:00 GMT) is widely expected to hold the 3-month LIBOR target range unchanged at 0.0%-0.75% with 0.25% as the focus point. At the June 18 meeting, the SNB said it would "take firm action to prevent an appreciation of the Swiss franc against the euro." In late August, SNB added We have not yet reached the moment for a change of direction in monetary policy in Switzerland and that the appreciation of the Swiss franc will continue to be prevented." After some CHF strengthening over the last 3 weeks, EURCHF found support at 1.5120, right at the 200-day MA before recovering towards 1.5190. CAUTION from the SNB's latest views on currency strength and whether its officials express satisfaction with current levels. Upside risks for EURCHF at 1.5240.