Credit Agricole CIB Research maintains a bullish bias on CHF, expressing this view via a short EUR/CHF exposure targeting a move towards 0.9450.
"The CHF remains among the laggards of the G10 FX space in Q422. Amidst fairly resilient risk appetite, the widening gap between CHF rates and other developed economies has possibly weighed on the CHF. Another slight cooling in Swiss CPI last week was not going to reverse this trend, nor call into question additional tightening by the SNB," CACIB notes.
"Furthermore, we continue to think that the CHF is yet to price in the positives of more muted inflation domestically in comparison to most peers, as (1) activity is less at the mercy of stagflation threats and (2) larger inflation gaps call for nominal CHF gains to keep real valuations largely at par," CACIB adds.