UBS Sees Franc Rising to 1.45-1.50 per Euro Over Next 12 Months

By Daniel Tilles

Sept. 14 (Bloomberg) -- The Swiss franc may strengthen against the euro over the next year amid policy tightening by the Swiss National Bank, according to UBS AG, the world’s second- biggest currency trader.

“The cross may have a knee-jerk reaction higher after the SNB meeting if the central bank again speaks about its desire to curb exchange-rate strength,” Mansoor Mohi-uddin, chief currency strategist in Zurich at UBS, wrote in a report dated Sept. 12. “If that causes the cross to get back to 1.53-1.54, that will present attractive long-term opportunities to short euro-franc. Ultimately the cross is likely to trade back into 1.45-1.50 range in the next 12 months once the SNB exits its super loose policies.”

The franc was little changed at 1.5128 per euro as of 8:07 a.m. in Zurich, from 1.5131 last week.

The SNB decides on interest rates on Sept. 17.

To contact the reporter on this story: Daniel Tilles in London at dtilles@bloomberg.net