EUR/CHF: Room For Upside Momentum To Accelerate Further – Credit Agricole

Credit Agricole CIB FX Strategy Research expects the CHF to remain under pressure especially against the EUR in the near-term.

"We expect the SNB to do its utmost to keep monetary policy expectations strongly capped.

Given the ECB’s more hawkish policy stance, all of the above suggests that there is additional room of diverging monetary policy expectations to the benefit of crosses such as EUR/CHF.

This is especially true should global risk sentiment remain stable, as for instance indicated by our FX risk index," CACIB argues.

All in, CACIB expects momentum traders to keep pushing EUR/CHF upside further over the coming weeks.

Source: Credit Agricole CIB ResearchOriginal Article