EUR/CHF: Trend higher may remain in place – ING

EUR/CHF yesterday broke above 1.00. Economists at ING had been forecasting a lower EUR/CHF this year and now they will have to revise up the forecast.

Race higher may stall in the 1.0070/1.0100 area

“Given that it looks like the Dollar will stay offered for the time being and the ECB looks unlikely to relent on its hawkishness, this trend to a higher EUR/CHF may remain in place. However, we doubt the SNB would want to see a big rally this early and the move may stall in the 1.0070/1.0100 area.”

“We had thought EUR/CHF could trade to 0.95 this summer, but it looks like we will have to revise up those forecasts.”