EUR/CHF seen around 1.20 in 12-month – Danske Bank

The cross is expected to re-test the 1.20 area within a year’s view, according to Jens Pedersen, Senior Analyst at Danske Bank.

Key Quotes

“SNB delivered as widely expected yesterday with no material changes to its policy communication”.

“We expect EUR/CHF to trade heavy still as EU political risks remain and as the SNB is awaiting ECB’s next steps to exit unconventional policy”.

“We look for EUR/CHF to be sticky around 1.13 towards year end and then head back towards 1.20 in 12M helped by ECB ‘normalisation’ drawing closer”.