EUR/CHF to decline towards 0.96 over the next months – Danske Bank
|Economists at Danske Bank expect EUR/CHF to resume its move downward in the coming months and see the pair at 0.96 in a 6-12 month horizon.
Relative rates to prove a headwind for CHF in the short run
“In the near term, we expect relative rates to prove a headwind for CHF, why we expect the cross to remain elevated at 0.98 in 1M. Further out, we continue to forecast the cross to move lower on the back of fundamentals and a tighter global investment environment.”
“We forecast the cross at 0.96 in 6M-12M.”
“The key upside risks to our forecast are global yield curves steepening amid a shift in the global investment environment and/or the SNB falling further behind the curve.”
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