Credit Suisse discusses EUR/CHF outlook and sees a scope for a move towards 1.0650 over the near-term.
"The SNB kept its monetary policy unchanged in Q3 and hasn’t recently intervened in FX markets, with sight deposits going sideways. Meanwhile, the Swiss trade surplus hit a record high in August. The ECB’s balance sheet expansion, on the other hand, will likely continue until its newly defined inflation target is met. We expect a higher APP once PEPP finishes...We continue to aim for 1.0650 in EURCHF," CS notes.
The risk to our view is that inflation in the euro area is non-transitory, which could trigger a hawkish repricing of the ECB’s policy rate path.