Back
18 Mar 2015
EUR/CHF outlook remains bearish – Westpac
FXStreet (Edinburgh) - The prospects for the European cross remains on the softer camp, suggested strategists at Westpac.
Key Quotes
“No change in our EUR/CHF bearish view - ongoing ECB QE and a highly probable resumption of hostilities in eastern Ukraine at some point are likely to weigh, dragging the cross back toward parity, if not below”.
“CHF has jumped sharply up our model rankings courtesy of a relative stronger total yield signal and higher global volatility within out logit signal. However, our risk model limits the model’s exposure to CHF due to its inherently higher realised volatility, leaving the model mostly flat CHF”.
Regarding USD/CHF, “An 8th week of higher highs / higher lows maintains a strong uptrend bias. Expect multi-year highs at 1.0240 to be challenged in the coming weeks”.
Key Quotes
“No change in our EUR/CHF bearish view - ongoing ECB QE and a highly probable resumption of hostilities in eastern Ukraine at some point are likely to weigh, dragging the cross back toward parity, if not below”.
“CHF has jumped sharply up our model rankings courtesy of a relative stronger total yield signal and higher global volatility within out logit signal. However, our risk model limits the model’s exposure to CHF due to its inherently higher realised volatility, leaving the model mostly flat CHF”.
Regarding USD/CHF, “An 8th week of higher highs / higher lows maintains a strong uptrend bias. Expect multi-year highs at 1.0240 to be challenged in the coming weeks”.