EUR/CHF seen lower at 0.9200 by end-2023 – JP Morgan

Analysts at JP Morgan offer a negative outlook for EUR/CHF for the year 2023, with a target of 0.95 in Q1 2023 and 0.92 by the end of 2023.

Key quotes

“CHF's anti-cyclical properties and the SNB's bullish policy regime shift for the currency point to further downside for EUR/CHF into 2023.”

“The CHF remains one of the best proxies of global growth, serving as a reliable hedge against lingering downside risks to the cycle next year.”

“Real rate differentials and Switzerland's sustained current account surplus remain bullish CHF tailwinds, particularly vs. EUR.”

“Deleveraging flows should also be CHF-supportive.”