Goldman Sachs is looking for EUR/CHF back below parity ahead

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• Overall, in this era of elevated and disparate inflation rates, it is time for G10 FX investors to take a page from strategies that have recently been mostly relevant for emerging markets. In particular, exchange rates should find new nominal trading ranges to account for high vs low inflation crosses-fair value is a moving target
• We see this as particularly relevant for EUR/CHF at the moment, where an uncharacteristically wide inflation differential will likely pull the cross comfortably below parity before too long

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