EUR/CHF: Forecast to move gradually to 1.20 - Danske Bank

Analysts at Danske Bank, forecast EUR/CHF to trade at 1.12 in 1M and they see it moving gradually to 1.20 over the next year. 

Key Quotes: 

“The Swiss National Bank (SNB) delivered no surprises at its December meeting and with little Swiss inflationary pressure still, it remains alert to any CHF appreciation from Italy and Brexit setbacks. The ECB’s gradual ‘normalisation’ process is a welcome move for the SNB, which has largely run out of policy tools.”

“The ECB is not in a hurry and political risks still loom in Europe; this should keep EUR/CHF on the defensive short term. That said, we still see EUR/CHF in a gradual move back towards 1.20 in 12M. We have left our forecast profile unchanged and still look for EUR/CHF to trade at 1.12 in 1M, 1.13 in 3M, 1.16 in 6M and 1.20 in 12M.”