EUR/CHF to surge higher towards 1.13 as the Fed turns hawkish – Danske Bank

EUR/CHF now trades closer to 1.09 than 1.10, as US real rates have moved lower. However, there has been a clear and important shift in US monetary pol  |  21/06/2021 08:32

EUR/CHF now trades closer to 1.09 than 1.10, as US real rates have moved lower. However, there has been a clear and important shift in US monetary policy with the Fed rhetoric turning increasingly hawkish. The shift has triggered a rebound in the USD, which is set to drive the EUR/CHF pair higher, according to economists at Danske Bank.

Fed is turning increasingly hawkish

“We still see a case for higher US real rates, especially now the Fed is turning more hawkish. We expect this will send EUR/CHF higher although we think most of the increases are now behind us. We still expect EUR/CHF to trade around 1.13 in 12M.”

“The key for the pair is if the global macro becomes so good in Europe that markets start talking about ECB rate hikes. Today, such a scenario is not in play. A setback in risk sentiment is another joker.”

 

Share

Popular News

Show More Popular News

Market Insight's Views

Market Insight analyses will provide both fundamental and technical comprehensions on FX
and other asset classes for Market Insight viewers

RISK WARNING

The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

  • ForexF
  • IndicesI
  • CommoditiesC
        Back

        Login to Market Insight Account

        Your Market Insight account gives you access to the tools that we offer our customers including our
        Technical Studies & Sentiment for your accounts.

        Forgot Password?

        Don't you have a Market Insight account? With a few easy steps you can easily register to Market Insight

        Create a Market Insight's Account

        Your Market Insight account gives you access to the tools that we offer our customers including our Technical Studies & Sentiment for your accounts.

        register_ty

        Thank you!

        Welcome to Market Insight family!

        You have succesfully completed the registration.
        We will send you an e-mail to give you some
        instructions and our Terms and Conditions!
        Our account representatives will be contacting you as
        soon as possible. If you have any further questions
        please do not hesitate to mail us via info@marketinsight.com