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    EUR/CHF eyes 1.10 in a month’s view – Danske Bank

    Jens Pedersen, Senior Analyst at Danske Bank, sees the cross heading towards the 1.10 area in a month’s horizon.Key Quotes“With the ECB in implementation mode, the pressure on the SNB from EUR weakness is fading”.“EUR/CHF has moved to levels where the SNB is more comfortable that the Swiss export industry is able to cope and recent communication from the SNB suggests that the central bank is less determined to bring about outright CHF weakness and is thus willing to accept EUR/CHF staying at these levels for now”.“We expect EUR/CHF to trade slightly lower going into the UK’s EU referendum on 23 June as Brexit concerns are likely to increase further, but target are bound to 1.10 in 1M if the UK votes to stay in the EU”.“Unless EUR/CHF takes a significant dive (which could happen in the event of a Brexit), we think the SNB will stay put for now”.“Longer term, we continue to expect fundamentals to support a higher EUR/CHF and keep our 6M and 12M forecasts unchanged at 1.12 and 1.15, respectively”.

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