ING Targets EUR/CHF Return to 0.9400 Amid Low Volatility

ING, a leading financial institution, believes that the EUR/CHF exchange rate could return to 0.9400 due to low volatility favoring franc-funded carry trades.

The pair traded at 0.9349 on Friday, little changed from the previous day after gaining 0.9% over the past month.

Chris Turner, global head of markets and regional head of research for the UK and CEE, stated that the franc could become the preferred funding currency, sending EUR/CHF back to 0.9400.

This level is a retest only around 0.5% above Friday's reference price of 0.9349, not a distant or dated destination.

The argument relies on low volatility and a risk-friendly backdrop sustaining demand for higher-yielding assets financed in francs.