Danske Research discusses UER/CHF outlook and flags a scope for another jump higher into 1.09/1.10 in Q1 of next year.
"Following the relief rally in EUR/CHF since early summer, spot remains largely unchanged. The SNB is preparing to continue sweating out the deflationary pressure in the Swiss economy and intervention remains the key policy tool. With the ECB set to hold rates and opt for other easing tools, Swiss policy rates are also set to stay unchanged at the longstanding -0.75% for an extended period of time," Dasnke notes.
" The key for the pair is if global macro becomes so good in Europe that markets start talking about ECB rate hikes. Today, such a scenario is not in play. Towards Q1, our base case is another jump higher in EUR/CHF," Danske adds.