EUR/CHF should continue to trade at levels around 0.96 for now – Commerzbank
|Economists at Commerzbank expect the EUR/CHF pair to trade around the 0.96 mark for the time being.
SNB might accept moderate CHF depreciation medium-term if price pressure continues to ease
The sudden moves in EUR/CHF over the past days suggest that the SNB is trying to prevent the franc from depreciating with the help of interventions, which would point towards a continued restrictive approach on the part of the SNB. That means EUR/CHF should continue to trade at levels around 0.96 for now.
If price pressure in Switzerland continues to ease, which we assume, the SNB might accept moderate CHF depreciation medium-term, as a strong franc is putting pressure on the economy. Once inflation reaches the level of price stability on a sustainable basis it makes little sense to keep the currency at (artificially) high levels.
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.