More on the CHF - EUR/CHF to gain longer term
Credit Agricole is looking for the euro to rebound against the CHF, to 1.15 by end 2020
- Advise not to sell EUR/CHF but to enter "long-term oriented longs"
- CA see the CHF weakening in time
On the Swiss National Bank:
- "Since diverging ECB-SNB policy differentials have failed to stabilise the EUR/CHF cross, it remains far too early to expect the central bank to turn less cautious, especially as the currency will remain a key driver of the central bank's decision-making process"
CA says that the use of euro for funding carry may have complicated the cross's typical pattern by lowering the franc's sensitivity to improving global risk sentiment
- "We expect this to change in the coming quarters with the SNB ultimately doing its utmost to keep interest rates low or lower for comparatively longer than, for instance, the ECB"