EUR/CHF making headways towards 1.2000? - BAML

The Research Team at Bank of America Merrill Lynch (BAML) published its outlook on EUR/CHF, maintaining a structural bearish bias on the CHF.

Key Quotes:

'For much of 2017, we have been consistently more bearish than the market on CHF. Heading into 2018, we maintain this out of consensus bearish call and believe that the combination of the synchronized global macro recovery and continued withdrawal of monetary stimulus by major central banks will reinforce the status of CHF as the G10 FX funding currency of choice.

Indeed, with our expectation of a potential recalibration of yield curve control target in Japan in H2, there is likely to be more symmetry around the JPY. 

Simply put, the job of the SNB is not done yet and we continue to believe that the SNB wants to see EUR/CHF trading sustainably above 1.20 before making any changes to its policy stance."