EUR/CHF to strengthen moderately in the course of the year – Commerzbank
|The tensions have calmed somewhat on the markets since the start of the Ukraine war, and the Swiss franc is less in demand as a safe haven. Economists at Commerzbank see EUR/CHF higher in the course of the year but only moderately.
Dovish SNB
“The SNB is likely to want to stick to the status quo for the time being. As long as risk aversion does not pick up more strongly again, the franc could trend weaker due to the SNB's monetary policy stance. Moreover, if the ECB initiates its turnaround in July, the EUR should gain.”
“We see EUR/CHF strengthening somewhat in the course of the year. However, only moderately since the SNB should then ultimately raise its key rate in July as well.”
“Against the USD, the franc should appreciate somewhat in the course of the year, when it becomes clear that the SNB is also initiating the turnaround in monetary policy. However, since the Fed will probably act much more actively, we see USD/CHF at higher levels again next year.”
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.