Forecasting euro/swiss to 1.17 by the end of 2019 and on to 1.1950 in 2020

Citing:

  • euro-zone growth momentum to improve (expect the manufacturing sector to do better)
  • which should boost trade-related capital inflow
  • Also stable policy differentials (ECB vs. SNB … Swiss National Bank to trail behind the European Central Bank rate outlook by several quarters)

Adds:

  • SNB have an aggressive policy mix (eg. negative rates, currency intervention if needed), which should weigh on the CHF safe-haven appeal