Forex Flash: SNB still far from remove EUR/CHF peg - RBS

The Swiss National bank is scheduled to publish a new release of its monetary policy on March 14. With the EUR/CHF trading at 1.2330 and after 15 months from the SNB's decision to set the 1.2000 as floor, there is no expectations about the bank changing its bias.

"The SNB Quarterly Review on 14 March looks unlikely to yield any change in the policy rate or the EUR/CHF floor given that the current policy stance has bought some stability to the Swiss economy," points RBS strategist Melinda Burgess.

The RBS analyst team expects "the SNB maintain the current policy mix." says Burgess. "Overall, despite some signs that economy is recovering, the prolonged deflationary environment and uncertain outlook abroad suggest the SNB will continue to provide a loose monetary policy environment via the EUR/CHF floor for the foreseeable future."