FXStreet reports that economists at MUFG Bank expect CHF strength to gradually ease and forecast the EUR/CHF pair at 1.14 by year-end.

“The traditional safe haven and low-yielding G10 currencies have been the worst performers so far this year. The Swiss franc has been undermined by building optimism over the outlook for a stronger global recovery and rising expectations for higher inflation.”

“A further negative development for the Swiss franc this month has been the reduction in Italian political risk which has helped ease a downside tail risk for the eurozone economy and euro. PM Draghi is expected to focus on utilizing the European Recovery Funds effectively, and his appointment will encourage optimism over the potential for further beneficial eurozone reforms.”