Credit Agricole Research discusses CHF outlook and maintains a bearish bias expressing that via holding long EUR/CHF* and long GBP/CHF* positions.
"We expect global risk sentiment to stay markets’ main driver. Investors’ appetite for risk assets has been falling in reaction to rising political uncertainty as related to the US. Nevertheless, in an environment which stays characterized by well supported growth expectations we see low scope of risk aversion rising sustainably.
From that angle we stay of the view that low yielders such as the CHF face downside risks, against both the EUR and GBP. It must be noted too that the SNB’s aggressive policy mix consisting of negative rates and currency intervention if needed should continue to keep the franc’s safe haven appeal low," CACIB argues.