BNP Paribas Research discusses EUR/CHF outlook and promotes buying the cross on further dips.
"EURCHF is trading in line with non-core 10y spreads vs Germany. Our interest rate strategy team does not expect spread widening to extend much further and they think the trajectory for Bund-BTP spreads will be a tightening one. They target the spread tightening to 100bp in the second half of the year.
Similarly, we think the sharp retracement in EURCHF will likely prove short-lived and will be quick to consider adding long spot exposure in the cross," BNPP argues.