Switzerland should be able to withstand the SNB decision

•      Switzerland should be able to withstand the SNB decision

•      Switzerland’s Finance minister said in an interview to a local newspaper that the economy can cope with the removal of the EUR/CHF minimum exchange rate.

•      The minister also added that if the exchange rate stays above 1.10, companies should be able to adjust as they are better placed than in 2011.

•      But given the downward pressure on euro, the rate is likely to move lower than higher, in our view.

•      Greece entered the final week for national elections: Syriza still lead the polls.

•      Today:

•      EU foreign ministers meet to discuss policy against Russia and terrorist attack in France. If they decide to maintain the current sanctions or impose new ones, this could hurt RUB further.

•      As for the indicators, Eurozone’s current account is due out.

•      This week:

•      Tuesday: German ZEW survey for January, both indices are expected to rise but it may not be enough to reverse the negative sentiment towards EUR.

•      Wednesday:  Bank of England releases the minutes of its Dec. meeting. The focus will be on the number and names of dissenters. UK employment report. The forecast is for a strong report that suggests less slack in the labor market. Bank of Canada policy meeting.

•      Thursday: The highlight of the week-ECB meeting. Expectations for the Bank to introduce a large scale QE program have increased dramatically following SNB’s move.

•      Friday:  Canada’s CPI for December.