What is the outlook for EUR/CHF?
Bank of America Global Research doesn’t like outright long in EUR/CHF to express bearish CHF bias.
“Despite sold performance since the start of the year, higher EUR/CHF does not feature high on our list for preferred CHF shorts. We do not see a clear distinguishing factor between the Eurozone and Switzerland as we did in 2017/2018 against the backdrop of the pricing out of political risk premium, EZ growth outperformance and a commitment from the ECB to exit unconventional policy,” BofA notes.
“Whilst the near-term risks are for further EUR/CHF gains, we see these as limited below 1.12,” BofA adds.