Analyzing the options market and using current spot and implied volatility, Brown Brothers Harriman estimates that the odds that the EUR/CHF could reached 1.00 before the end of the year is about 14% and it rises to 35% considering the next 12 months. “While not the odds-on favorite, it seems sufficiently high that it cannot be simply ignored,” wrote Marc Chandler, Global Head of Currency Strategy.
Chandler affirms that recent global debt crisis and in particular the European debt crisis, put the Swiss Franc safe haven function “on steroids”. This is not good new for Swiss equities. “The appreciation of the Swiss franc against the euro is one of the reasons why the Swiss Market Index (SMI) has generally underperformed,” Chandler noted.
Chandler affirms that recent global debt crisis and in particular the European debt crisis, put the Swiss Franc safe haven function “on steroids”. This is not good new for Swiss equities. “The appreciation of the Swiss franc against the euro is one of the reasons why the Swiss Market Index (SMI) has generally underperformed,” Chandler noted.
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