EUR/CHF: Increasing franc appreciation dynamics for the next few days – Commerzbank
|EUR/CHF is trading below parity. Economists at Commerzbank expect the Swiss franc to continue its appreciation dynamic.
Violent EUR/CHF volatilities expected
“If EUR/CHF levels below parity are accepted by the SNB without intervention, FX traders are likely to take that as an invitation to increase the pace of appreciation. Until the SNB has to intervene with CHF sales after all. Then there should be another jump upward.”
“In the end, violent EUR/CHF volatilities are likely to be the result.”
“I expect increasing CHF appreciation dynamics for the next few days. You can also put it this way: The market should now sound out the SNB pain threshold on the EUR/CHF downside. That's just how the market works when a central bank sets unclear limits for exchange rates.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.