BofAML: Cautious on recent rally in EUR/CHF

Bank of America Merrill Lynch analysts suggest to remain cautious on the recent rally in EUR/CHF cross.

Key Quotes

“Though we maintain a bearish medium-term view on CHF based on valuation, SNB reaction function & shifting balance of payments, combination of one-off M&A flows & CHF declining correlation to risk means lead us to be cautious on recent rally in EUR/CHF for the time being.”