Thread: FBS: USD/CHF will reverse upwards (Deutsche Bank)

Analysts at Deutsche Bank think that US dollar might have reached a bottom trading versus Swiss franc when it hit the record minimum of 0.8326 on June 7.

The specialists expect the downtrend for the pair USD/CHF to reverse upwards. In their view, the greenback will be experiencing the steady recovery during the next year.

According to the bank, US currency will rise to 0.9300 by the end of the third quarter and to 0.9800 by the end of 2011. The next year the pair may get above the parity climbing to 1.0500 in 12 months.


Chart. Daily USD/CHF

The 2-day FOMC meeting begins today. It’s drawing special investors’ attention as this is the last one before the end of QE2.

Analysts at Bank of America Merrill Lynch claim that though the Fed’s Chairman Ben Bernanke will sound a little more cautious about the economic outlook, he will remain stick to the forecast that the nation’s economy will rebound in the second half of the year. In their view, the $600-billion bond purchasing program will finish as planned and US monetary authorities will switch to the neutral monetary policy.

Strategists at BMO Capital Markets note that after the last three Fed’s meetings spreads between US and Australian 2-year bonds widened. As a result, the specialists recommend buying Australian dollar and selling the greenback at $1.06 stopping at $1.05 and taking profit at $1.09.


Chart. Daily AUD/USD