fxs_header_sponsor_anchor

News

EUR/CHF: ECB to bring some near-term support by pushing back against prospects of rate cuts – Rabobank

Last week EUR/CHF hit levels a whisper above 0.94 before finding buyers. Economists at Rabobank analyze the pair’s outlook ahead of ECB and SNB meetings this week.

SNB will employ more dovish language

The recent move lower in EUR/CHF is likely a function of accelerated bets in the market regarding the prospects of ECB rate cuts this year. In our view, the ECB will use this week’s policy meeting to push back against these expectations. This should bring some near-term support for EUR/CHF. However, if the SNB were to come across as hawkish at its policy meeting this week then EUR/CHF would be at risk of pushing to new lows.

Now that CPI inflation is back within the SNB’s target range, we expect that the SNB will employ more dovish language this week, to reduce the risks of further CHF strength and lower the chance that it may have to intervene in the market to weaken the CHF.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.