SEB Research discusses EUR/CHF outlook and thinks that the cross is a good medium-term buy around current levels.
"The CHF is a gauge meter for conditions in the euro area. Earlier this year capital outflows from Switzerland weakened the CHF but more recently it has reacted significantly on the political uncertainty in Italy and has strengthened.
We expect market fears concerning possible negative effects of the new Italian government to ease. When they do, CHF will first correct part of its late sharp appreciation before resuming its gradual depreciation," SEB argues.
Use the setback in EUR/CHF to gain as concerns ease," SEB advises.