CHF: To Remain A Victim Of The Global Divergence Trade; Staying Long EUR/CHF – Credit Agricole

Credit Agricole CIB FX Strategy Research expects CHF to remain a main victim of the global divergence trade with the SNB staying comfortable with its accommodative policy stance.

"We expect the CHF to remain subject to downside risks, in particular against the EUR. Given little scope of the SNB considering a change in stance any time soon, there is room for monetary policy expectations to diverge further, to the benefit of the cross. Elsewhere, the central bank’s policy mix, consisting of negative rates and currency intervention, is likely to keep the CHF’s safe-haven appeal low," CACIB argues.

Therefore, CACIB stay long EUR/CHF* from 1.1320 targeting a move towards 1.1800.

Source: Credit Agricole CIB ResearchOriginal Article