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It is difficult to say about the probability of the «abenomics» session for the Swiss franc - 20.1.2014
The Swiss Franc (USDCHF) weakened by 2.5% (an increase in the chart). Now, a number of economists believe that this trend will continue to reach 0.98 francs per dollar by the year-end . According to them, previously in the period (2007-2012) the Swiss Franc and Japanese Yen strongly strengthened due to low rates and carry trade policies. Later, the yen has fallen sagnificantly against the dollar (an increase in the chart) and reached more than adequate level due to the redemption of government bonds by the Bank of Japan. Thus the Japanese agovernment have struggled with possible deflation. The “Abenomics” term arose by the name of Japanese Prime Minister Shinzo Abe. It is difficult to say about the probability of the «abenomics» session for the Swiss franc. However, it should be noted that due to the actions of the Bank of Japan, the weakening of the yen against the U.S. dollar in 16 months was about 36%. During the same time, the Swiss franc, in contrast, rose by 2%. Meanwhile, there is a risk of deflation or Swiss economy. Theoretically, this may require a change in the monetary policy of the Swiss National Bank. However , its next meeting is to be held not sooner than March 20. In the meantime, we will track other events relating to the Swiss franc. The next important economic data is expected on January 30 (KOF indicator ) . The Australian Dollar (AUDUSD) was on a slight correction after the strong attenuation. This was facilitated by the data on growth in the Chinese economy by 7.7% for the last year. Note that the increase in Chinese GDP for October-December was 1.8% less than the preliminary forecasts. This limited the strengthening of Aussie. On Wednesday, this week ,we expect the macroeconomic data on inflation in Australia that could affect its national curency rate. Neat release (GMT+0, Greenwich): 11:00
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