Thursday, July 7, 2011

UBS & BBH: Comments on EUR/CHF

Analysts at UBS note that the European debt crisis will keep being the main driver of the single currency, Swiss franc and investors’ risk sentiment in the medium term.


In their view, the outlook for the pair EUR/CHF during the summer months seems to be neutral. The specialists don’t expect any sustained upward correction of euro. According to UBS, risks for the pair remain asymmetric: while upside risk is limited, the downside one looks rather significant.  


Strategists at Brown Brothers Harriman point out that after Moody’s yesterday downgraded Portugal the market’s concerns about the spreading of the debt crisis.


The pair EUR/CHF declined due to amid renewed tensions in the periphery debt market that’s expressed by the surge of periphery yields and CDS prices.

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