EUR/CHF likely to gradually rise towards 1.20 by end-2018 – Lloyds bank
Source: FxWire Pro - Commentary / 20 Nov 2017 15:50:51 Eastern Standard Time
Last month the EUR/CHF pair continued its grind higher, recording a post-currency-capremoval high above 1.17 on 26 October, noted Lloyds Bank in a research report. The Swiss National Bank’s policy continues to be the main driver, with the central bank acknowledging that “significant overvaluation” of the CHF has reduced, but that the currency continues to be overvalued.
During its September policy meeting, the SNB left its monetary framework on hold, with President Jordan repeating that negative interest rates continue to be “extremely important” in lessening the upward pressure on the CHF. The reduction in geo-political tension – especially with regard to the U.S. and North Korea, combined with buoyant risk sentiment has also aided stem CHF appreciation.
“Overall, we continue to forecast EUR/CHF to gradually rise towards 1.20 by end-2018”, added Lloyds Bank.
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