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Safe havens have been back in favour in recent sessions despite all the optimism regarding reflation this year. Jane Foley, Senior FX Strategist at Rabobank, forecasts the EUR/CHF pair at 1.11 by the end of the year.

Key quotes

“While there is scope for the CHF to soften on the back of a dovish policy position from the SNB this week, the currency’s sensitivity to safe haven flows means that it is likely to continue to take a lead from broader market sentiment.”  

“We do see potential for EUR/CHF to edge towards 1.11 later in the year. However, following the sharp move higher earlier in the year we see scope for dips back below the 1.10 in the coming quarter.”