EUR/CHF seen at 1.09 on a three-month view – Rabobank
|Jane Foley, Senior FX Strategist at Rabobank, has adjusted up the EUR/CHF forecast to 1.09 in three months and though she expects demand for the Swiss franc in six month, the 1.06 level offers solid support.
Key quotes
“We now see scope for a move towards 1.09 on a 3-month view, though we also expect another surge in safe-haven demand on a 6-month view which would provide renewed support for the CHF.”
“While Europe’s economy is currently in a poor state, the backdrop for the EUR has been boosted by the European Commission’s budget proposal which takes a step towards regional debt sharing. In addition, the huge extension of the ECB’s PEPP suggests it is willing to do whatever it takes to chase away fears of fragmentation in the region. Although EUR/CHF hit a 5 year low close to 1.05 in May, these events in Europe suggest a break below this level is now far less likely.”
“While we do see scope for another rush towards safe-haven currencies on a 6-month view, assuming improved confidence in the EU/EMU is sustained, we would expect the 1.06/107 area to offer support.”
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.