Danske Research discusses EUR/CHF outlook and maintains a constructive bias over the long-term, but revises its near-term forecasts slightly lower.
"In August, EUR/CHF was approaching 1.07, but since our last update, EUR/CHF has moved higher and was briefly above 1.09. EUR/CHF is trading at 1.0812 at the time of writing," Danske notes.
"We have revised down our EUR/CHF forecasts profile slightly but overall we still see a case for the cross moving higher. We still expect US 10yr Tresury yields will move lower over the coming year targeting 2.0% in 12M, which should lift EUR/CHF. We still forecast EUR/CHF will trade in 1.11 in 12M," Danske adds.