EUR/CHF to reach 1.10 in the medium-term – Credit Suisse
|Economists at Credit Suisse continue to stick to our medium-term target of 1.1000 in EUR/CHF. In the short-term, they see some slight downside risks after the SNB policy meeting on Thursday, followed by some upward pressure heading into the referendum coming Sunday.
Key quotes
“It is feasible in our view that we could observe slight downward pressure on EUR/CHF after the SNB meeting. Such a move might then be followed by a recovery in EUR/CHF towards the end of the week amid positioning squaring ahead of the Swiss referendum. However, we expect the proposal to end the FMP to be rejected, which should cap the upside in EUR/CHF early next week.”
Medium-term, we remain of the view that EURCHF could reach our longstanding target of 1.1000. However, we currently do not see scope for even higher levels given the dovishness of the ECB, second wave COVID-19 fears, Brexit uncertainty and the looming US elections.”
“If on the other hand, the Swiss franc appreciates too rapidly, we do believe that the SNB will still be inclined to intervene in the foreign exchange markets. Nevertheless, we would consider our view to be wrong should EUR/CHF trade below 1.0590.”
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.