More surprises in store in Japan?
Persistent rumours are reporting that Mr Abe could delay the second rise in VAT, given the deeper decline than expected in growth. As a result, the third quarter release of the Japanese GDP is likely to play a key role in the Prime Minister’s decision due before a month time. In Switzerland, the persistent decline in EUR/CHF near 1.2000 is increasing the odds to see a SNB’s intervention. In the short-term, it seems that a weakening “yes” camp in the upcoming Swiss Gold referendum would be the only hope to reduce downside pressures on EUR/CHF.
Read the full report: FX Research