EURCHF Chart Technical Outlook Recession fears and global monetary easing is likely to favour the CHF
The EUR/CHF is on a downward trend. Investors are concerned about a worldwide economic slowdown in general and the soft Eurozone’s macroeconomic figures in particular are weighing on risk appetite, which gives a competitive advantage to the safe-haven Swiss Franc.
Eurozone CPI remains steady at levels close to the 2% ECB target rate and, although the second quarter’s GDP maintained the 0.3% growth rate seen in the first one, the weak PMI figures suggest that the economic outlook is worsening.
This will force the ECB to cut rates in September, and at least once more before the end of the Year. In this context, unless we see a significant economic recovery in the third quarter, I expect the broader bearish trend to continue, with rebounds offering good entry opportunities for sellers.
