The Swiss National Bank will probably elevate the important thing charge by 05 foundation factors once more in September and December in accordance to analysts at Danske Bank. They see the EUR/CHF cross at 0.96 in one month, at 0.95 in three months and at 0.93 in twelve months.

Key Quotes: 

“EUR/CHF has moved sharply decrease and is at present buying and selling round 0.96. This comes after a month of world yields transferring decrease and consequently rising recession fears.”

“We expect the SNB to hike by 50bp again in September and December to curtail underlying inflation pressures bringing the policy rate to 0.75%. With the SNB broadly following the ECB, we see relative rates as an inferior driver for the cross. We continue to forecast the cross to move lower on the back of fundamentals and a tighter global investment environment. We thus lower our overall forecast profile and now forecast EUR/CHF at 0.93 in 12M.”

“The key upside risks to our forecast are global yield curves steepening amid a shift in the global investment environment and/or the SNB falling behind the curve.”


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