30 Jan 2015
EUR/CHF still looking for a ‘fair value’ – Danske Bank
FXStreet (Edinburgh) - Christin Tuxen, Senior Analyst at Danske Bank, expects EUR/CHF to remain on the bearish camp in the near/medium term.
Key Quotes
“CHF will now be subject to much less predictable SNB policy moves and we believe the SNB will have to do more (rate cuts and/or intervention) to match an upcoming ECB QE move”.
Indeed, SNB will have a hard time justifying continued CHF strength, as deflation remains an entrenched issue for the Swiss economy”.
“The uncertain political situation in Russia and Greece add to downside potential”.
“The cross could nevertheless be in for a turn later in the year when a euro recovery materialises and the SNB keeps rates firmly negative (and intervene) to fight the well-established Swiss deflation issue”.
Key Quotes
“CHF will now be subject to much less predictable SNB policy moves and we believe the SNB will have to do more (rate cuts and/or intervention) to match an upcoming ECB QE move”.
Indeed, SNB will have a hard time justifying continued CHF strength, as deflation remains an entrenched issue for the Swiss economy”.
“The uncertain political situation in Russia and Greece add to downside potential”.
“The cross could nevertheless be in for a turn later in the year when a euro recovery materialises and the SNB keeps rates firmly negative (and intervene) to fight the well-established Swiss deflation issue”.