The EURCHF has continued to rise during today’s session as the pair adds to the strong recent gains seen since the 1st round of the French election. The market is now testing the upper end of its recent range around 1.10 and this area has proved significant resistance on a couple of occasions previously. 

 Credit Agricole FX Strategy Research argues that as safe-haven demand falls, there is a room for diverging ECB–SNB monetary policy expectations to drive the EUR/CHF cross gradually higher.

“With political uncertainty decreasing further, EUR-denominated risk assets may appear more attractive to Swiss investors, triggering a change in the risk-asset-related capital flow situation,” CACIB argues. 

However, CACIB expects any further trend higher in EUR/CHF to likely prove gradual at best.

“Hence, while we advise buying on dips, we believe patience is warranted. Our EUR/CHF year-end target remains at 1.11 followed by a further move towards 1.15 by the end of 2018,” CACIB advises.