19 Jan 2015
EUR/CHF points southwards in near term – Danske Bank
FXStreet (Edinburgh) - According to Lars Christensen, Senior Analyst at Danske Bank, EUR/CHF could test lower levels in the near term.
Key Quotes
“As we expect more from the ECB than the market seems to do at present, this should affect the CHF via relative rates (CHF positive) and risk sentiment (CHF negative) alike”.
“Notably, the SNB may eventually have to cut rates to match the ECB on easing”.
“Thus, EUR/CHF may head lower in the near term but drift higher once EUR weakness fades and the SNB faces the adverse effects of CHF strength on inflation and growth”
Key Quotes
“As we expect more from the ECB than the market seems to do at present, this should affect the CHF via relative rates (CHF positive) and risk sentiment (CHF negative) alike”.
“Notably, the SNB may eventually have to cut rates to match the ECB on easing”.
“Thus, EUR/CHF may head lower in the near term but drift higher once EUR weakness fades and the SNB faces the adverse effects of CHF strength on inflation and growth”