13 Jul 2015
EUR/CHF to test parity – Goldman Sachs
FXStreet (Mumbai) - The FX strategy team at Goldman Sachs sees the safe haven pressure on the CHF to push the EUR/CHF to parity amid Greek crisis.
Key Quotes
“Tensions in Europe will remain a worry for the CHF, the ‘safe haven’ par excellence for Europe.”
“Though the channels of contagion from Greece to the rest of Europe are less concerning than in previous episodes of European tension, we think the market’s response to escalating tensions is conspicuously benign. As we approach the July 20, 2015 payment date to the ECB, we expect market pressure to intensify, with EUR/CHF testing parity.”
“Beyond Greece, we continue to think that EUR/CHF will move through parity over a 12-month horizon as the weakening trend in EUR resumes.”
Key Quotes
“Tensions in Europe will remain a worry for the CHF, the ‘safe haven’ par excellence for Europe.”
“Though the channels of contagion from Greece to the rest of Europe are less concerning than in previous episodes of European tension, we think the market’s response to escalating tensions is conspicuously benign. As we approach the July 20, 2015 payment date to the ECB, we expect market pressure to intensify, with EUR/CHF testing parity.”
“Beyond Greece, we continue to think that EUR/CHF will move through parity over a 12-month horizon as the weakening trend in EUR resumes.”