Credit Agricole CIB Research maintains a bullish bias on CHF, expressing this view via a short exposure in EUR/CHF targeting a move towards 0.9450.
"The CHF is holding onto this month’s gains. Of special note, USD/CHF has tentatively reached fresh seven-month lows sub-0.94, while EUR/CHF has steadied .98. The fact that Switzerland has not followed in the footsteps of the Eurozone and the steep deterioration in its trade balance to a large deficit should still act as a key prop in the CHF long-term valuation," CACIB notes.
"While it remains to be seen whether the turnaround is more structural than just cyclical for the Eurozone, Switzerland’s superior fundamentals could in the meantime make a more compelling case for the CHF over the EUR, as we remain short EUR/CHF in our discretionary portfolio," CACIB adds.