20 Jan 2015
EUR/CHF quarterly forecasts revised – BTMU
FXStreet (Edinburgh) - Derek Halpenny, Head of European Head of GMR at BTMU, showed the revised forecasts for EUR/CHF following the recent SNB move.
Key Quotes
“After the shock end to the EUR/CHF floor, announced by the SNB last week, we have of course had to make revisions to our franc forecasts”.
“With the floor in place, we had EUR/CHF remaining close to 1.2000 and USD/CHF drifting higher in line with the drop in EUR/USD (1.1200 year-end)”.
“We assume that EUR/USD drop is more about US good news rather than euro-zone bad news and hence in those circumstances, we believe EUR/CHF can remain broadly stable – in fact even rise a bit toward year-end if the euro-zone economy starts to see some benefit from a very strong US economy and QE from the ECB”.
“We have revised our EUR/CHF quarterend forecasts to 1.0300; 1.0100; 1.0300 and 1.0500”.
Key Quotes
“After the shock end to the EUR/CHF floor, announced by the SNB last week, we have of course had to make revisions to our franc forecasts”.
“With the floor in place, we had EUR/CHF remaining close to 1.2000 and USD/CHF drifting higher in line with the drop in EUR/USD (1.1200 year-end)”.
“We assume that EUR/USD drop is more about US good news rather than euro-zone bad news and hence in those circumstances, we believe EUR/CHF can remain broadly stable – in fact even rise a bit toward year-end if the euro-zone economy starts to see some benefit from a very strong US economy and QE from the ECB”.
“We have revised our EUR/CHF quarterend forecasts to 1.0300; 1.0100; 1.0300 and 1.0500”.