The Danske Bank analysts offer their outlook on the EUR/CHF cross amid expectations of Swiss National Bank (SNB) intervention.
Key Quotes:
“EUR/CHF is closing in on levels where SNB might step in, which could limit USD/CHF downside.
Our medium-term bias remains for the cross to edge higher on fundamentals but risks remain skewed towards CHF strength near term, as monetary-policy constraints bite and central-bank credibility is set to be tested.
We keep our near-term forecast of EUR/CHF at 1.11 in 1M and 1.11 in 3M and stress that risks to this are asymmetric and on the downside here; we keep our 6M and 12M forecasts unchanged at 1.13 and 1.15, respectively.”
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