Credit Agricole CIB Research discusses its expectations for next week's SNB policy meeting. CACIB is core long EUR/CHF target a move towards 1.15 into 2022.
"We expect the SNB to stick to an unchanged monetary policy stance given that the price outlook remains uncertain and as the highly valued CHF still appears to keep monetary conditions too tight. While all of that is in line with consensus expectations, market impact should prove limited," CACIB notes.
"With the SNB keeping its monetary policy stance unchanged, we keep a neutral short-term view on the CHF. Our long-term view remains one of depreciation, albeit that will depend on rising selling interest for funding as for instance driven by more widespread global healing," CACIB adds.