Nordea FX Strategy Research discusses EUR/CHF outlook in the near-to-medium outlook.
The upwards trend in EUR/CHF has been halted, but otherwise several parameters as e.g., relatively low global volatility still speak in favour of a moderate and very gradual rise in EUR/CHF.
We expect the range 1.10 to 1.20 to prevail, as the SNB will likely intervene in the lower part of the range, while they could easily be tempted to bring down the size of their FX reserves at levels around 1.20.
In the medium term when the Italian election looms, a possible resurfacing of Euro-area political risks is on the cards, why there is a chance that the EUR will once again trade with a risk premium versus the CHF. We therefore only expect a very gradual rise in EUR/CHF over the forecast horizon, Nordea argues.
Source: Nordea ResearchOriginal Article
