The franc is still massively overvalued, says Sarasin and the fair level from a purchasing-power perspective lies at around CHF1.32 per euro and CHF1.02 per dollar, according to Sarasin. "The franc is set to remain overvalued given the deterioration of the global economy, though an economic rebound in 2013, should slowly push the franc down towards its fair value," says strategist Ursina Kubli. "Any hint of a potential gradual reduction in the euro-franc floor could also be misinterpreted as capitulation by the SNB," she adds. "Consequently, the SNB will be careful not to deviate from the objectives." she notes. EUR/CHF at 1.2065.
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