Forex Flash: CHF weakness to prove more persistent in 2013 - BTMU
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EUR/CHF
FXstreet.com (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ notes that the Swiss Frac has underperformed during early 2013 with EURCHF rising towards 1.2500, marking its highest level since May 2011.
He sees that recent upward momentum for the pair marks a significant shift from price action prevalent throughout most of 2012 when the pair remained just above the SNB's self-imposed floor of 1.2000. he writes, "The shift clearly highlights that fundamental Swiss franc appreciation pressures are beginning to ease allowing Swiss franc over valuation to correct. It has prompted us to downgrade our outlook for the Swiss franc in the year ahead acknowledging that there is now a higher probability that Swiss franc weakness will prove a more persistent dynamic. Our new three and twelve month EURCHF forecasts are 1.25 and 1.28."
He sees that recent upward momentum for the pair marks a significant shift from price action prevalent throughout most of 2012 when the pair remained just above the SNB's self-imposed floor of 1.2000. he writes, "The shift clearly highlights that fundamental Swiss franc appreciation pressures are beginning to ease allowing Swiss franc over valuation to correct. It has prompted us to downgrade our outlook for the Swiss franc in the year ahead acknowledging that there is now a higher probability that Swiss franc weakness will prove a more persistent dynamic. Our new three and twelve month EURCHF forecasts are 1.25 and 1.28."
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