Swiss Franc: Safe-haven demand keeps CHF firm against Euro – Rabobank
Rabobank expects EUR/CHF to remain close to the 0.93 area in the coming weeks as Eurozone fiscal tensions continue to support safe-haven demand for the Swiss Franc.
Swiss Franc (CHF) has maintained its strength against the Euro (EUR) due to safe-haven demand, according to Rabobank's analysis. The eurozone's fiscal tensions are contributing to this demand for the Swiss Franc. While the CHF's strength and Switzerland's low inflation might not be favorable for the Swiss National Bank (SNB), they do not pose an immediate policy concern unless the demand for the CHF increases.
Rabobank expects EUR/CHF to stay close to the 0.93 level in the coming weeks, potentially showing a slight increase over the medium term if French budget risks stabilize. The SNB may intervene if there is an accelerated CHF buying this autumn. The 100-day simple moving average (SMA) for EUR/CHF is close to the 0.93 level, which may offer support before the 200-day SMA around 0.9240.
If the French budget situation remains stable, EUR/CHF should hold around the 0.93 level in the coming weeks and possibly rise slightly over the medium term.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
