FXStreet reports that economists at MUFG Bank expect the EUR/CHF pair to move higher based on the global reflation assumption.

“There is hardly any reason for any considerable shift in policy stance and the only notable change was the SNB committed to intervening to limit CHF strength “as necessary’ in contrast to the commitment last year post-COVID to intervene ‘more strongly’ in order to achieve its price stability goal. 

“External factors will continue to dictate CHF movement and direction and we maintain that and based on our global reflation assumption, we continue to see scope for EUR/CHF moving further higher this year.”

“USD/CHF is currently higher than we expected given EUR/USD is far lower. Assuming EUR/USD corrects higher again later this year, then EUR/CHF will be the avenue of CHF depreciation not USD/CHF.”