EUR/CHF is unlikely to see a meaningful bounce anytime soon - Goldman Sachs
|With European risks likely to intensify in the coming weeks, the EUR/CHF pair is unlikely to see meaningful bounce anytime soon, according to analysts at Goldman Sachs.
The currency pair is currently trading at 1.1188, having clocked a low of 1.1162 on Friday. At that level, the currency pair was down 2.46 percent from the high of 1.1444 registered on Feb. 5.
Key quotes
Our model estimate of EUR/CHF fair value has dropped by about 6 big figures since last April-3 from Italy and Turkey spillovers, 2 from Euro area growth concerns, and 1 from Brexit-related volatility.
Looking forward, the tricky part is that these risks are somewhat unrelated, so it is difficult to see a path where they all dissipate at once. Easing tensions in Italy for example will probably do little to relax Brexit uncertainty (although all of them would probably help raise Euro area growth prospects to some degree).
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.