Commentary by Danske Bank’s chief currency analyst, Christin Tuxen
Her commentary here is pretty much in line with that. She says that “in our view the market currently ignores that the road to exit for the SNB entails more steps than that of the ECB: fading SNB intervention is only a first step in the SNB’s ‘normalisation’ process; the next step will be for the SNB to stop characterising CHF as ‘highly valued’ – and we are not there yet”.
Tuxen adds that the SNB will remain on the sidelines with regards to the ‘normalisation’ process considering that EUR/CHF is still not on a sustainable path towards 1.20 just yet.
She ends with saying that they have adjusted their short-term forecasts for EUR/CHF to 1.18 in 1M, 1.19 (previously 1.17) in 3M, 1.21 (previously 1.20) in 6M, and 1.23 in 12M.