Credit Suisse discusses EUR/CHF outlook and maintains a buy-on-dips bias in the near-term.
"The latest US Treasury semi-annual report on FX reduces downside risks in EURCHF, in our view, and vindicates the SNB’s recent stance regarding FX intervention. The more symmetrical ensuing SNB intervention pattern however also implies that the upside potential in EURCHF might also be more limited than previously thought," CS notes.
"Therefore, we stick with our current “buy on dips” strategy but raise our entry point slightly from 1.0950 to 1.0980. We also recommend a 20 July 2021 expiry EURCHF 1.1015/1.1350 1x1 call spread as an expression of the view (losses are limited to upfront premium)," CS adds.