Economic slowdown in Switzerland cannot be ruled out.Trade policy situation is creating high uncertainty for all countries, including Switzerland.Price stability cannot prevent trade policy related uncertainty, but still very important.Trade policy could fragment global economy.Main instrument is interest rate, but we can also use forex interventions to influence monetary conditions.
The central bank is certainly not happy with the Swiss Franc strength. This is a greenlight for more CHF weakness barring risk-off flows.
This article was written by Giuseppe Dellamotta at www.forexlive.com.