EUR/CHF to break lower as ECB QE expectations build - ING

Sandeep Kanihama FXStreet Contributor

Analysts at ING suggest that the EUR/CHF is likely to move to 1.05 this summer as expectations are building of ECB quantitative easing.

Key Quotes

“Effectively our call is that the Swiss National Bank will face the same kind of pressure (ECB money printing) that prompted them to abandon the 1.20 EUR/CHF floor in January 2015. This all comes at a time when eurozone peripheral debt spreads have already tightened significantly and in the case of Italy may have tightened too much.”

“Our team are watching out for signals that Italy's Deputy Prime Minister Matteo Salvini may pull his Liga party out of the government, prompting early elections. Given our view of the dollar topping out this summer, we also see a chance of USD/CHF breaking below 0.97 amidst higher volatility.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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