EUR/CHF: SNB Wants EUR/CHF Back Above The Previous Floor Of 1.20 – BofAML

Bank of America Merrill Lynch FX Strategy Research notes that the Swiss National Bank's (SNB) shift at its meeting this week in the characterization of CHF overvaluation was a mark-to-market exercise reflecting the price action since the last policy meeting in June.

"The SNB continues to keep all options on the table but in our view, the “highly valued” nature of the CHF suggest that SNB wants EUR/CHF above 1.20 (the previous floor). A lack of FX intervention flows suggest that foreign investors continue to sell Swiss assets – a theme which we have been emphasising over the past year.

The risks to our year-end EUR/CHF forecasts are therefore squarely to the upside," BofAML argues.

Source: Bank of America Merrill Lynch Rates and Currencies ResearchOriginal Article