Danske Research maintains a neutral bias on EUR/CHF over the coming months.
"Going into Q1, EUR/USD have taken a step lower and with it, EUR/CHF too. At the moment, upside risk to European inflation and demand seems very limited (due to lockdowns). In turn, the near-term potential for a weaker CHF also appears limited. We see balanced risks to EUR/CHF near-term. If EUR/CHF is to move higher, it will likely come in tandem with re-opening of the European economy from H2 and onwards," Danske 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," Danske adds.