Chris Turner, global head of strategy at ING, suggests that if the conviction levels of ECB easing grow this summer, we should expect EUR/CHF to stay pressured.
Key Quotes
“While the SNB’s nominal trade-weighted CHF index is on its highs, the inflation-adjusted ‘real’ index is not.”
“This latter measure of the CHF is some 5% off the highs seen in summer 2015 (largely due to low inflation in Switzerland relative to trading partners) and a retest of that 2015 high would equate to EUR/CHF hitting the 1.05 area. That seems quite a conservative target for EUR/CHF this summer.”
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