EUR/CHF: CHF Outflows On Ceasing Trading With Sulzer; Vulnerable To A N-Term Pullback - Danske

Danske Research discusses EUR/USD outlook and notes that the cross jumped yesterday to post-SNB-floor-abandonment highs on what appears to be CHF outflows related to the ceasing of trading with Sulzer, a company partly owned by sanctioned Russians.
"The cross has come a long way since early March and as the ECB increasingly has to consider the loss of cyclical momentum in the eurozone and the impairment of consumer and investor confidence deriving from the trade issue as Draghi pointed to yesterday.
In this setting EUR/CHF could prove vulnerable to the downside near term, even if we still think the SNB will want to see the pair higher before a ‘policy exit," Danske argues.