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EuRCHF


Sam Boughedda
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HI Sam

 

There were a couple of reasons for this. Firstly, the Swiss national bank has been trying to weaken the currency as they don't like it getting too expensive because they want their exports to remain attractive to foreign buyers. So to do that they will purchase foreign currencies to weaken the franc.

Secondly Germany and France announced they had agreed a euro fund to combat the ecponomic fallout of the coronavirus. This is something that had been weighing on the euro for the last few weeks as there appeared to be a split between in the bloc.

 

As a result we saw the EURCHF surge

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Hi Sam, thanks for coming here.

Analysts at The Canadian Imperial Bank of Commerce (CIBC) believe the EUR/CHF pair will rise over the next few months, thanks to a strong euro. The analysts estimate EUR/CHF to climb to 1.0850 in the third quarter and rise further to 1.09 in Q4. 

CIBC analysts said that the Swiss National Bank (SNB) stayed on “a unique path amongst central banks, focusing upon currency intervention rather than cutting rates further into negative territory or embarking upon QE. We expect that currency management will be the primary tool for the SNB, despite the prospect of a record economic contraction in 2020.”
 

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