EUR/CHF to see a sustained return above parity – SocGen
|SNB raises policy rate by 50 bps to 1.50%. Economists at Société Générale expect the EUR/CHF pair to regain the 1.00 level.
Additional rate rises cannot be ruled out
“The SNB raised the policy rate by 50 bps to 1.50 as expected and did not rule out additional tightening, following in the footsteps of the ECB last week. It narrows the spread vs the Euro policy rate to 150 bps, but our base case is for this to widen in the coming months if market volatility subsides. This in theory augurs well for a sustained return of EUR/CHF above parity.”
“EUR/CHF resistance at 1.0015/40.”
“Measures announced by the federal government, FINMA and the SNB have put a halt to the banking crisis.”
“The central bank revised up the inflation forecast to 2.6% for 2023 and 2.0% for 2024 and 2025.”
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.