USD/CHF: Political developments could strengthen the Swiss franc more than forecast - CitiBank
|Analysts at CitiBank, forecast the USD/CHF at 1.00 in a 1-3 month period, at 0.98 in 6-12M and around 0.92 over the long term.
Key Quotes:
“The main risks to our forecasts are developments politically in the region. Should Brexit related or Italian budgetary risk premia rise, we envisage more CHF strength than forecasted.”
“The SNB continues to cite a “highly valued” currency and “fragile” market backdrop as reasons to justify negative interest rates and FX intervention. As we expect the inflation outlook to remain subdued, particularly due to oil price base effects, the SNB most likely remains on hold for the foreseeable future.”
“Since the RSI stayed at neutral territory, USD/CHF may range trade between 0.9789-1.0171.”
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.