CIBC Research discusses EUR/CHF outlook and flags a scope for SNB active intervention as the cross is trading close to its 2-year low. CIBC targets EUR/CHF at 1.09 by year-end.
"Despite a mild recovery in risk sentiment, EUR/CHF is trading close to 2Y lows as the ECB remains accommodative. Although this would put pressure on the SNB to ease, market expectations for a cut by December have receded from a near certainty in early September to around 25%," CIBC notes.
"We don’t see the SNB cutting this year, but expect they will remain active in currency intervention," CIBC adds.