Credit Agricole CIB FX Strategy discusses EUR/CHF outlook and thinks that dips are good buying opportunities.
"It remains about the overvalued currency to keep monetary conditions too tight. Hence, in line with comments from central bankers of late, a policy mix consisting of negative rates and currency intervention if needed will stay intact for longer. Such conditions should also continue to keep the franc’s safe haven appeal comparatively low.
Hence, and regardless of unstable risk aversion as reflected in more muted equity market developments, we expect CHF rallies to stay a sell, for instance against the EUR," CACIB argues.
In line with this view, CACIB maintains its recommendation of being long EUR/CHF* from 1.1320 targeting 1.18.
Source: Credit Agricole CIB ResearchOriginal Article
