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14 May 2015
EUR/CHF seen at 1.05 by year-end – Rabobank
FXStreet (Edinburgh) - Senior FX Strategist Jane Foley at Rabobank sees the cross trading around 1.05 by the end of the current year.
Key Quotes
“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 Feb”.
“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”.
“On the assumption that growth in the Eurozone continues to improve we expect a better tone in the Eur to allow EUR/CHF to move back towards 1.05 by year end”.
Key Quotes
“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 Feb”.
“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”.
“On the assumption that growth in the Eurozone continues to improve we expect a better tone in the Eur to allow EUR/CHF to move back towards 1.05 by year end”.