Danske Research discussed EUR/CHF outlook and targets the cross at 1.11 in 3-months and 1.12 in 6-months.
"While rising yields may take a tactical pause near-term, we still see a case for higher global yields, especially in the second half of the year. We expect this will send EUR/CHF higher although we think most of the increases are now behind us so we expect the movements will be more gradual from here," 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. A setback in risk sentiment is another joker," Danske adds.