Jens Nærvig Pedersen, Senior Analyst at Danske Bank, explains that political uncertainty in Europe, coupled with rising geopolitical risks following the election of Donald Trump as the next US president has supported CHF and put pressure on SNB to act to curb CHF appreciation pressure.
“Political uncertainty looks to be a key theme for FX markets again this year. EUR/CHF is still trading close to 1.07. We expect it to stay here in the near term as long as Le Pen is in the French presidential race. Longer term, we continue to expect fundamentals to support a higher EUR/CHF. We forecast EUR/CHF at 1.07 in 1M, 1.08 in 3M, 1.11 in 6M and 1.14 in 12M.”
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 securities. 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 Forex 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.