FXStreet (Guatemala) – Jane Foley, Senior Currency Strategist at Rabobank noted conditions surrounding CHF.
“The best long-term scenario for the SNB would be a reflated Eurozone which would naturally led to a stronger EUR and a reduction in CHF safe haven demand.”
“In this environment EUR/CHF would likely rise back towards fair value. However, the reality is somewhat different and the SNB looks set to have to fire-fight an overvalued currency for some time yet. We expect that EUR/CHF will hold around the 1.04-1.05 level through much of this year given the prospect of FX intervention from the SNB.”
“Based on our expectation of a December Fed rate hike we expect USD/CHF to trend towards 1.00 on a 9mth view.”
Jane Foley, Senior Currency Strategist at Rabobank noted conditions surrounding CHF.
(Market News Provided by FXstreet)