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EUR/CHF set to correct back up to the 0.95/0.96 area – ING

EUR/CHF clawed back losses last week. Economists at ING analyze the pair’s outlook. 

Looking for the correction higher

EUR/CHF looks too low to us. It looks to have traded down to these 0.92/0.93 levels on the back of the excessive pricing of the ECB easing cycle. Our team looks for a mere 75 bps compared to current pricing of 150 bps. If we are right – and given that rate differentials have been a bigger driver over recent months – we see EUR/CHF correcting back up to the 0.95/0.96 area.

We now expect the SNB to be FX buyers.

Geopolitics is a bearish risk, but macro favours a higher EUR/CHF.

 

US Dollar rebound has more room to go until data worsens – MUFG

USD rebound is unfolding given the richness of US rates curve.
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Oil takes a hit with Russia not complying to OPEC+ production cuts

Oil prices are dropping nearly 1% again this Wednesday with Oil traders sending the black fuel cheaper. The move comes on recent numbers from Russia that reveal it is not complying with the production cuts it agreed upon in the last OPEC+
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