EUR/CHF: Expected to hold around 1.08 – Natixis

Research Team at Natixis, suggests that given the decline of the EUR/USD, the EUR/CHF has been under pressure, eyeing the now unofficial floor rate at 1.08 that has been defended by the Swiss National Bank for more than one year.

Key Quotes

“The central bank probably intervened in the foreign exchange market to limit the Swiss franc’s appreciation and is likely to continue doing so, even though our view remains that this policy is not sustainable over the long run given the very high M1 money supply and the size of the central bank’s balance sheet. In the short term, however, the EUR/CHF can be expected to hold around 1.08.”