USD/CHF: Credit Suisse believes SNB will lower its rates this week, recommends that traders buy the pair

In a note published today, Credit Suisse recommends the buying of USD/CHF this week:

"We believe that the SNB will ease monetary policy on Thursday, with a 0.25% rate cut, dropping to -1%. Although Mario Draghi has disappointed the markets, our economists continue to believe that it is important for the credibility of the SNB to meet the ECB's easing, especially in a weak domestic demand environment.

The SNB itself has fueled expectations of a reduction, stressing the fact that the establishment of a negative deposit rate has partially restored the rate differential between the EUR and the CHF.

For the record, the Bloomberg consensus anticipates no rate cut, and therefore there is room for a surprise if our expectations take shape."