EUR/CHF - Credit Agricole Favors a Buy - 08/31/2018 (GMT)

Credit Agricole in recent notes to clients, highlights EUR/CHF outlook and maintains a Long in spot from 1.1295 targeting the higher end of this year’s trading range over the coming months.

"We stay in favour of buying EUR/CHF. Risk sentiment has been stable, regardless of little progress as when it comes to China/US trade talks. After all, expectations were low ahead of and the most recent news flow suggests that talks will continue. Hence, given the low bar for positive surprises latest development failed to dampen sentiment.

Looking ahead, in line with our risk index analysis, we see scope for improving sentiment in the weeks to come. This should increase selling interest in funding currencies such as the CHF.

The EUR, in contrast, should stay subject to upside risk from positioning and scope of improving fundamentals. Please note that we stay long EUR/CHF as a trade recommendation," said CA traders.