Credit Agricole recommends buying euro against franc

Although the comments of the head of the Swiss National Bank Jordan are not new, they show that the dynamics of the Swiss franc rate will contribute to the decision making process, says Valentin Marinov, strategist at Credit Agricole. Strengthening CHF was one of the reasons for the excessive monetary policy weakened by the SNB for many years. The long-term fair value of the franc, which Credit Agricole model shows, still suggests that EUR / CHF should trade closer to 1.20. The bank recommends a long position in EUR / CHF, aimed at growth to 1.18, writes strategist Manuel Oliveri. The pair has already recovered significantly after finding the bottom at 1.06 earlier this year and is ready to continue its growth.

The Swiss National Bank said today that the weakening of the franc against the euro eliminated some of the significant overvaluation of the national currency.

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