Danske Bank expects the EURCHF to move towards 1.20 levels this year. However, the bank warned that it would be difficult to move above 1.20 if the European Central Bank remains hesitant on normalisation.
But in any case, financial markets remain optimistic about the timing of the SNB's announcement of a rate hike soon, but the bank may be reluctant to change course as much as possible in an effort to curb the Swiss franc's appreciation.
Bank experts expect the pair to move towards 1.19 levels from one to three months, targeting 1.21 by six months and 1.23 within 12 months.
