Market commentary by Nordea Bank's global currency strategist Andreas Steno Larsen
He says that the SNB's continued rhetoric on the "highly valued" swissie is less of a driver than the political risks that stems from Europe.
"I don't think the SNB has said or done anything that will drive the CHF. Risk premium related to EUR politics will", Larsen argues.
He adds that he sees risks tilted a little to the downside for EUR/CHF as "slight worries on Italian politics will remain a drag on EUR versus the CHF in the short run".
Although, in the longer-term he sees the EUR/CHF moving higher as the SNB is likely to move "way after" the ECB does to normalise monetary policy. Larsen lays out his forecast for EUR/CH at 1.15 in the short-term and 1.18 in 12 months.
The other side of the story compared to Danske Bank's view here. But ultimately, majority of market participants still view the EUR/CHF heading higher towards 1.20.
