– Obama wins re-election, USD weakens
– Polish central bank to cut rates
– Greek parliamentary vote on austerity package in focus
What to watch for today
CHF: October intervention check. The SNB will publish the October FX reserve update today. The pace of SNB’s reserve accumulation declined substantially over the last couple of months. With EURCHF trading well above the 1.20 floor in October, we think the SNB is unlikely to have made sizeable intervention in the FX market to defend the floor last month. The change in SNB’s sight deposits last month also does not suggest any meaningful intervention. In the absence of a pick-up in the pace of reserve accumulation, we do not expect the SNB to be a major overhang on EURUSD and EUR crosses following the strong diversification flows in 3Q. On the other hand,
evidence of sizeable intervention may fuel speculation about a potential increase in the floor and potential for further diversification flows.
Click here to read the full report: FX Daily
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