EUR/CHF targets 1.22 within a year’s view – Danske Bank
|According to Analysts at Danske Bank, the Swiss Franc is expected to depreciate towards the 1.22 area vs. the shared currency in a 12-month horizon.
Key Quotes
“The SNB kept its dovish tone at the June meeting and maintained that the franc is ‘highly valued’ and kept the option of FX intervention open”.
“While the SNB has clearly been challenged (again) by the ECB’s hesitant stance, the SNB should also have cemented its eagerness to see CHF weaker before making a shift on policy”.
“With EUR strength set to return eventually, this makes us comfortable about maintaining a case for CHF depreciation in 6-12M but continued trade tensions is a downside EUR/CHF risk. We still look for 1.16 in 1M, 1.16 in 3M, 1.19 in 6M and 1.22 in 12M”.
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