Expecting upside in EUR/CHF towards 1.11 ahead of 1.13 by year-end - CIBC
A look at EUR/CHF
CIBC Research adopts a core bullish bias on EUR/CHF through year-end targeting the cross at 1.11 by end of Q3 and at 1.13 by end of Q4.
"The relative stability in FX sight deposits over the last couple of months suggests a lack of official activity. We expect the SNB to stand firm against any unwanted and unexpected CHF appreciation. However, unless the global recovery outlook proves to take a material hit, we would continue to expect gradual CHF depreciation, precluding the SNB from needing to return to aggressive action," CIBC note.
"We anticipate a cautious upside bias in EUR/CHF as the
prospect of a strong EU rebound into H2, benefiting from the more
aggressive vaccine rollout, favours a gradual cheapening of the CHF," CIBC adds.
EUR/CHF is up 25 pips to 1.0924 today.
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