EUR/CHF short-term target at 1.0700 – Growth Aces

FXStreet (Barcelona) - The Growth Aces Research Team, shares that Swiss government has warned that CHF’s appreciation might lead to a weaker economic growth, and further predicts EUR/CHF to make a move towards 1.0700 levels in the short-term.

Key Quotes

“The Swiss government warned that the appreciation of the country's currency meant economic growth would be weaker than previously expected but said it was still too difficult to assess how severe the slowdown would be. The Swiss government's expert group said it would issue new economic forecasts on March 19.”

“In a separate statement the State Secretariat for Economics said Swiss consumer sentiment index improved to -6 points in the first quarter from -11 points in the fourth quarter of 2014. However, the reading in not worthy indicator now, because more than three quarters of the survey was done before the cap ended.”

“Let us remind that the KOF Swiss Economic Institute slashed its growth forecast for 2015 to -0.5% from the 1.9% it had predicted in December and said it expects no growth next year, having previously forecast a 2.1% expansion.”

“In our opinion the EUR/CHF is likely to break above the level of 1.0650 (recovery high on January 15) soon. The short-term target of our EUR/CHF long is 1.0700.”