Citi maintains a bearish bias on EUR/CHF targeting a move towards 0.95 in 3 months.
"CHF weakened considerably following a marginally dovish hike by the SNB in September. We like fading this move and forecast a stronger franc in the ST. Our 0-3m forecast is 0.95," Citi notes.
"In the SNB’s last meeting in September, they hiked policy rates by 75 bps to 0.5%, exiting negative interest rates. Despite the move, markets were underwhelmed by the decision, as SNB President Jordan hinted at a possibility of full-point hikes after the ECB hiked by 75 bps," Citi adds.