#EURCHF @ 0.99048 to trade around parity for an extended period, USD/CHF to drop below 0.90 – Barclays
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]
Economists at Barclays expect the Swiss Franc to remain resilient. They see the EUR/CHF pair hovering around parity for an extended period.
“We expect the Swiss Franc to remain resilient, supported by the SNB’s strategy to use currency strength as a lever against inflation. This strategy is implemented via further policy rate hikes and FX intervention, which should keep EUR/CHF around parity for an extended period. In a recovering EUR environment, this implies additional strength versus the Dollar (to below 0.90 in USD/CHF).”
“We do not expect the recent banking sector stress to dent Franc strength or undermine its status as one of the world’s ‘safe haven’ currencies. Such an outcome would require radical shifts in Switzerland’s balance sheet via ‘safe asset’ outflows, which we deem very unlikely.”
[/s2If]
Join Our Telegram Group
