Nomura on EUR/CHF - see an increasing likelihood of 1.20

From eFX

Nomura FX Strategy Research continues to expect EUR/CHF to perform and see an increasing likelihood of 1.20 over the next year.

"Our ETF trackers suggest fewer euro area equities have been purchased since July. The North Korea risk premium in G10 FX could have been a contributing factor. But with the global growth backdrop and positive inflation surprises in the pipeline, we continue to expect EUR/CHF to perform and see an increasing likelihood of 1.20 over the next year

"We expect the equity outflows to continue to dominate the price action and expect EUR/CHF to continue its trend higher towards 1.20 over the coming year," Nomura argues.