EUR/CHF set to correct back up to the 0.9500/0.9600 area – ING

FXStreet Insights Team FXStreet

EUR/CHF clawed back losses last week. Economists at ING analyze the pair’s outlook.

Looking for the correction higher

EUR/CHF looks too low to us. It looks to have traded down to these 0.9200/0.9300 levels on the back of the excessive pricing of the ECB easing cycle. Our team looks for a mere 75 bps compared to current pricing of 150 bps. If we are right – and given that rate differentials have been a bigger driver over recent months – we see EUR/CHF correcting back up to the 0.9500/0.9600 area.

We now expect the SNB to be FX buyers.

Geopolitics is a bearish risk, but macro favours a higher EUR/CHF.

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FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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