17 Feb 2015
EUR/CHF upside potential in H2 – Danske Bank
FXStreet (Edinburgh) - Christin Tuxen, Senior Analyst at Danske Bank, believes EUR/CHF could head higher later in the year.
Key Quotes
“CHF is now 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 ECB when QE starts”.
“Indeed, SNB will have a hard time justifying continued CHF strength, as deflationary pressures are omnipresent and CHF strength will drag down Swiss exports”.
“The uncertain political situation in Russia and Greece adds to downside potential”.
“The cross could nevertheless be in for a turn later in the year when a EUR recovery materialises and the SNB keeps rates firmly negative (and intervene) to fight the well-established Swiss deflation issue”.
Key Quotes
“CHF is now 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 ECB when QE starts”.
“Indeed, SNB will have a hard time justifying continued CHF strength, as deflationary pressures are omnipresent and CHF strength will drag down Swiss exports”.
“The uncertain political situation in Russia and Greece adds to downside potential”.
“The cross could nevertheless be in for a turn later in the year when a EUR recovery materialises and the SNB keeps rates firmly negative (and intervene) to fight the well-established Swiss deflation issue”.