JP Morgan EUR/CHF outlook for the upcoming year:
- Stay short EUR/CHF in cash
JPM are targeting:
- 0.95 in Q1 2023
- 0.92 by the end of 2023
JPM citing:
- CHF's anti-cyclical properties and the SNB's bullish policy regime shift for the currency point to further downside for EUR/CHF into 2023
- The CHF remains one of the best proxies of global growth, serving as a reliable hedge against lingering downside risks to the cycle next year
- Real rate differentials and Switzerland's sustained current account surplus remain bullish CHF tailwinds, particularly vs. EUR.
- Deleveraging flows should also be CHF-supportive.
