Analyst on USD/CHF and EUR/CHF, even higher for the Swiss franc ahead
ING expect USD/CHF under 0.97 and EUR/CHF towards 1.05 in the northern summer months.
- our call is that the Swiss National Bank will face the same kind of pressure (ECB money printing) that prompted them to abandon the 1.20 EUR/CHF floor in January 2015
- This all comes at a time when eurozone peripheral debt spreads have already tightened significantly and in the case of Italy may have tightened too much
- ING say to watch for signals Italian Deputy Prime Minister Matteo Salvini may pull his Liga party out of the government, prompting early elections.
ING see the USD peaking during summer months, USD/CHF dropping below 097 on this "amidst higher volatility"
I popped up the weekly candles on EUR/CHF in the chart. In the shorter term be wary of CHF selling from the SNB circa 1.10. Dunno how successful they'll be but could delay any further decline for EUR/CHF at the least.