The report projects an upward trend for EURCHF toward 0.93, driven by the ECB's hawkish stance and the Swiss franc's status as a primary funding currency for carry trades. Geopolitical easing following the US-Iran peace deal reduces safe-haven demand for the franc.
Key Takeaways
- 1.The euro is expected to remain resilient and trend higher toward 0.93, supported by a hawkish ECB and yield advantages.
- 2.The Swiss franc is expected to underperform due to fading safe-haven demand and a dovish SNB.
Table of Contents
- ECB hawkishness supports the euro amid growth concerns
- Fading 'safe-haven' demand and dovish SNB weigh on the franc
- Investment considerations
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Authors
Constantin BolzClémence Dumoncel
Securities
EURCHF
Themes
Carry TradeMonetary Policy Divergence
Regions
EuropeSwitzerlandIran
