CHF: SNB Is Stepping Up Its Interventions; What’s Next For EUR/CHF? – BofA

The Swiss central bank is battling strong upward pressure on the Swiss franc. What is the near-term bias for the currency?

Here is their view, courtesy of eFXdata:

Bank of America Global Research  maintains a structural bullish bias on CHF over the coming months.  

“SNB is stepping up its interventions to weaken CHF. This will fail in absence of re-establishing peg which is low pro…SNB may be reluctant to push sight deposit growth to levels in 2012. Balance sheet growth will become a concern,” BofA notes,.

“Path of least resistance remains for CHF to grind higher and for EUR/CHF to breach 1.05 as EZ debt concerns dominate m/term,” BofA adds.

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