EUR/CHF seen at 0.94 in 6-12M – Danske Bank

EUR/CHF has moved lower on the back of ECB repricing and lower rates in general. Economists at Danske Bank analyze the pair’s outlook.

SNB to deliver its first 25 bps cut in June

We expect the SNB to deliver its first 25 bps cut in June but see risks tilted towards earlier. We do not expect the SNB to commence on FX intervention any time soon (neither selling nor buying).

We forecast a modest move lower in EUR/CHF on the back of fundamentals, continued tight financial conditions and a global growth slowdown.

We target the cross at 0.94 in 6-12M.