EUR/CHF: Scope for a test of 0.90 by year-end – Credit Suisse

Analysts at Credit Suisse lower their EUR/CHF target to 0.9000 from 0.9400 as there are upside risks to the Swiss National Bank’s (SNB's) policy rate path.

SNB to remain hawkish

“We see upside risks to the SNB's policy rate path versus market pricing and believe that EUR/CHF will continue to drift lower.” 

“We lower our target to 0.9000 from 0.9400 for the end of Q4 and consider our view invalidated above 0.9950. The latter level could, for example, be triggered should the ECB hike interest rates more aggressively than currently priced, with the SNB deliberately falling behind the curve.”