USD/CHF seen edging back down to 0.86 on a one-month view – Rabobank
Economists at Rabobank expect the USD to remain well supported against the Euro. However, the USD/CHF pair is seen lower at 0.86 on a one-month view.
ECB policy rates may have peaked
We see scope for the USD to remain well supported vs. the EUR on the back of fears that short term rates in the US are likely to be higher for longer. We also see risk that the Greenback could see some support from safe-haven flows. We also judge the market to be positioned too long for the EUR given the risk that ECB policy rates may have peaked.
That said, given the injection of uncertainty over the US fiscal position we have revised up our forecast for the safe haven Franc and see scope for USD/CHF to edge back down to 0.86 on a one-month view.