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14 May 2015
EUR/CHF to move back towards ₣1.05 by year end - Rabobank
FXStreet (Mumbai) - Jane Foley, Senior Currency Strategist at Rabobank believes that the Swiss franc is set to weaken slightly against the euro over the next seven months, with the shared currency likely to appreciate on expectations of economic recovery gaining momentum later this year.
Key Quotes:
“On the assumption that growth in the euro zone continues to improve we expect a better tone in the euro to allow EUR/CHF to move back towards ₣1.05 by year end,"
"Despite threats that it will continue to intervene in the FX market, albeit at a lessened pace, the SNB has been unable to stop EUR/CHF edging lower since late February,"
"Despite soft interest rate settings, currency strength continues to feed deflationary conditions and softer PMI readings have led to a debate about recessionary risks.”
"Although some demand will be repressed by low interest rates, the strength of Swiss’s budget and current account positions will ensure strong safe haven demand for CHF in times of market stress."
Key Quotes:
“On the assumption that growth in the euro zone continues to improve we expect a better tone in the euro to allow EUR/CHF to move back towards ₣1.05 by year end,"
"Despite threats that it will continue to intervene in the FX market, albeit at a lessened pace, the SNB has been unable to stop EUR/CHF edging lower since late February,"
"Despite soft interest rate settings, currency strength continues to feed deflationary conditions and softer PMI readings have led to a debate about recessionary risks.”
"Although some demand will be repressed by low interest rates, the strength of Swiss’s budget and current account positions will ensure strong safe haven demand for CHF in times of market stress."