What is the outlook for EUR/CHF in the fourth quarter?
Here is their view, courtesy of eFXdata:
Danske Research maintains a neutral bias on EUR/CHF in Q4 targeting the cross around 1.08 in 1 and 3 months.
“The lack of clear reflation support from the Fed has left EUR/CHF with little direction for now. The SNB is preparing to continue to sweat out the deflationary pressure in the Swiss economy (CPI running at -0.8% y/y): intervention remains the key policy tool and the SNB has started to publish quarterly intervention data in a move towards more transparency on this after the US put it on watch for currency manipulation. Policy rates are set to stay unchanged at the long-standing -0.75% for an extended period of time,” Danske notes.
“We see EUR/CHF range-bound in the absence of a clear reflation or recovery catalyst, stuck in a 1.07-1.09 range for now. Risks remain asymmetric longer term, as the SNB holds the downside in check and a global recovery in 2021 brings some relief to the undervalued pair,” Danske adds.
For lots more FX trades from major banks, sign up to eFXplus
By signing up for eFXplus via the link above, you are directly supporting Forex Crunch.