Currency strategists at Barclays note that investor sentiment towards the euro in recent times have changed for the better and believe that sustainable economic recovery will strengthen the market, which is of the opinion that the ECB is close enough to start removing stimulus measures, analysts said.
In the bank believe that correction of forecasts of the European central bank may give investors reason to expect an increase in deposit interest rates next year.
In addition, in the coming months, support for the single European currency can eliminate the risk premium associated with the uncertainty of the elections in France, analysts say.
At Barclays noted that such a prospect gives cause for moderate optimism in EUR/CHF - in the are bank waiting for the pair in the second quarter to come back to 1.09 and will continue to recover moderately (to 1.10 and 1.11 respectively) in the third and fourth quarters.
Showing posts with label CHF. Show all posts
Showing posts with label CHF. Show all posts
Saturday, 25 March 2017
Barclays is waiting for recovery of the euro against the franc
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Friday, 24 February 2017
Deutsche Bank: Short positions in EUR/CHF have become more attractive
The fundamentals remain constructive for the Swiss currency, in addition to these, analysts believe that increased political risks in Europe that are negative for the euro and positive for francs and which maintain the status of the franc as a safe haven currency.
At Deutsche Bank noted that the inflow of foreign capital continues to urge the franc to rise, as 1.06 level seems to have become the new unofficial border of the Swiss National Bank, as bank analysts do not talk about defense of this level at any cost.
At Deutsche Bank advised attempts to growth of EUR/CHF to be used for sales of еuro, expecting to break below 1.06 and the fall of the exchange rate at 1.00. Analysts note that the data show favorable for such a deal positioning of market participants.
At Deutsche Bank noted that the inflow of foreign capital continues to urge the franc to rise, as 1.06 level seems to have become the new unofficial border of the Swiss National Bank, as bank analysts do not talk about defense of this level at any cost.
At Deutsche Bank advised attempts to growth of EUR/CHF to be used for sales of еuro, expecting to break below 1.06 and the fall of the exchange rate at 1.00. Analysts note that the data show favorable for such a deal positioning of market participants.
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Thursday, 10 November 2016
ING: The yen will rise to 95, the euro - to 1.15, and the Canadian dollar could drop to 1.38
A verbal intervention by the Ministry of Finance and the Bank of Japan after the rise of the yen is quite possible, but unilateral intervention beyond the level of 100 seems unlikely, say analysts at ING.
According to them there is a risk of collapse of the USD/JPY to 95 amid growing demand for protective assets, which may cause Japanese authorities to strengthen verbal and actual intervention in the currency market.
ING Analysts' forecasts after winning the US presidential election by Trump suggest growth of EUR/USD to 1.15, but any growth will be limited, taking into account that the re-evaluation of the prospects for an increase in interest rates by the Federal Reserve was partially compensated by a concern for the affairs of European exporters.
We can see a sharp movement on the USD/CAD to 1.38, as the global market will avoid the risk, analysts said. There are concerns about the expectations of easing of the monetary policy by the Bank of Canada, taking into account the current uncertainty in the US. All the factors are negative for the Canadian dollar. On the other hand the bank of Switzerland would remain on the market and will closely monitor francs and will resort to actual intervention, analysts said. USD/CHF will follow the dynamics of EUR/USD, they added.
According to them there is a risk of collapse of the USD/JPY to 95 amid growing demand for protective assets, which may cause Japanese authorities to strengthen verbal and actual intervention in the currency market.
ING Analysts' forecasts after winning the US presidential election by Trump suggest growth of EUR/USD to 1.15, but any growth will be limited, taking into account that the re-evaluation of the prospects for an increase in interest rates by the Federal Reserve was partially compensated by a concern for the affairs of European exporters.
We can see a sharp movement on the USD/CAD to 1.38, as the global market will avoid the risk, analysts said. There are concerns about the expectations of easing of the monetary policy by the Bank of Canada, taking into account the current uncertainty in the US. All the factors are negative for the Canadian dollar. On the other hand the bank of Switzerland would remain on the market and will closely monitor francs and will resort to actual intervention, analysts said. USD/CHF will follow the dynamics of EUR/USD, they added.
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