Analysts at UBS underline that the next year investors will be reluctant to invest in euro-denominated assets. Switzerland with its optimistic growth outlook and good fiscal profile, on the contrary, seems to be attractive enough for the capital flows. Investing in Swiss assets will is an appealing option as the regulations all over the world are going to become more intense. According to UBS, Swiss franc may become more dependent on the market’s sentiment.

The specialists believe that in 2011 the Swiss National Bank (SNB) won’t conduct currency interventions as it will be more hawkish due to the country’s encouraging economic performance.

UBS expects that the pair EUR/CHF will trade at 1.28 in 3 months and at 1.35 by the end of 2011. Currently the single currency is in the 1.3277 area versus Swiss franc.



Chart. Daily EUR/CHF


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