Credit Agricole sees the pair rising to 1.10
Credit Agricole maintains a long USD/CHF position from 0.9325, with a stop at 0.90, and a target at 1.00.
Here is their latest:
"The CHF has been capped, mainly on the back of subsiding worries related to Greece. Looking ahead, we expect the currency to remain driven by both stabilising risk sentiment and capped rate expectations.
Although rising Fed rate expectations are likely to keep investor demand for risk assets limited in the short-term, a further improving global growth outlook should ultimately compensate for tighter monetary conditions. Accordingly risk sentiment is unlikely to deteriorate sustainably.
When it comes to the SNB it appears unlikely that a less dovish monetary policy stance will be considered anytime soon. On the contrary, the still overvalued currency as well as weaker growth prospects should keep price developments muted and the SNB in a comfortable position to keep an aggressive stance.
As a result of these outlined conditions we remain in favour of selling CHF rallies, for instance against the USD. We remain long the pair."
