EUR/CHF could surpass 1.20 in the next months – Danske Bank

Chief Analyst at Danske Bank Arne Rasmussen assessed the recent price action around the cross.

Key Quotes

“EUR/CHF continues to creep higher still, now just inches away from the old SNB floor of 1.20. While this is a story of policy normalisation in Europe as inflation is slowly returning, it is also seemingly in recent weeks a story about Russian outflows of CHF due to US sanctions”.

“While the latest move should make the SNB more comfortable, note that SNB President Jordan said last week in an interview that he is keen on not ‘provoking’ any premature CHF appreciation with policy moves”.

“We thus still think the first SNB hike is beyond our 12M forecast horizon and see EUR/CHF moving firmly above 1.20 this year”.