EUR/CHF seen around 1.0700 near term – Danske Bank

Jens Pedersen, Senior Analyst at Danske Bank, believes the cross remains poised to stay around the 1.0700 handle in the near term.

Key Quotes

“Political uncertainty in Europe, coupled with rising geopolitical risks following the election of Donald Trump as the next US president, has supported CHF and put pressure on SNB to act to curb CHF appreciation pressure”.

“Political uncertainty looks to be a key theme for FX markets again this year. EUR/CHF is still trading close to 1.07”.

“We expect it to stay here in the near term as focus turns to European political uncertainty. Longer term, we continue to expect fundamentals to support a higher EUR/CHF and keep our 6M and 12M forecasts unchanged at 1.10 and 1.13, respectively”.