EUR/CHF: Target raised to 1.10 – Credit Suisse

EUR/CHF should benefit from lower euro area break-up risk. Therefore, analysts at Credit Suisse advocate to buy the pair with an initial target at the 1.10 level. 

See: 

• Yohay Elam's ECB Preview
• Joseph Trevisani's ECB Preview

Key quotes

“In the short-term, we are inclined to give the reduced euro break-up risk emanating from the EU Recovery Fund a prominent weight. As such, we would recommend scaling into EUR/CHF longs at current levels around 1.0750 and adding on dips towards 1.0670, with an initial target of 1.1000.” 

“We would consider ourselves wrong at 1.0490. The latter outcome might become a possibility should there be another COVID-19 wave accompanied by renewed lockdowns or a breakdown in the EU Recovery Fund negotiations.”