Goldman Sachs: CHF Over The River, Not Out Of The Woods

Goldman Sachs think "the EU fiscal relief deal had two key takeaways.
1st, the speed of the agreement confirmed earlier signals that there is
a strong political will to avoid the slow-footed responses that plagued
the Euro Area in prev. downturns. 2nd, the fact that negotiators ring-
fenced the Recovery Fund cash side-stepped some potential market
scrutiny and prioritized the immediate need. However, we think the
pressures on the CHF will not completely relax just yet. Significant
interventions earlier in the year held CHF at least 2-3% weaker than
model-based estimates, so there is less of a risk premium to unwind in
the first place. In addition, while the Recovery Fund is an important step,
there are still a number of risks in the region that are likely to linger.
Finally, we find that Switzerland's historical stability & staunch
inflation targeting might give CHF a similar appeal to gold. We are
revising up our EUR/CHF forecasts to CHF1.08, CHF1.13 & CHF1.20
in 3, 6 & 12 months (from CHF1.05, CHF1.08 & CHF1.10 prev.)."