Bank of America Global Research discusses CHF outlook and targets EUR/CHF at 1.06 and USD/CHF at 0.93 by year-end.
"CHF has remained largely sidelined over the past month with EUR/CHF broadly trapped between a 1.07/1.08 trading range. This relative stability continues to underpin the tug-of-war that faces the market: trade CHF on global cyclical factors or trade CHF on relative real yield?
"For the SNB, there should be no sense of imminent panic. CHF has been behaving smartly so will likely continue to adopt its message warning that further interventions are necessary when needed. We continue to believe that SNB policy will be driven by FX considerations first rather than interest rates and expect the policy rate to remain at -0.75% for the rest of the year," BofA notes.