EUR/CHF could see 1.20 next year – Danske Bank

According to Jakob Christensen, Chief Analyst at Danske Bank, the cross is expected to test the key 1.20 area at some point in 2018.

Key Quotes

“Finally on the majors, we note that the SNB has seemingly ceased to intervene during the latest EUR/CHF uptick as the weekly sight deposit figures revealed yesterday; this suggests SNB is growing more comfortable with CHF levels but we still think the SNB will prefer to see 1.20 (not to be seen until 2018 at the earliest in our view) in the cross before starting to talk about an exit from negative rates”.