The Swiss franc eased against the euro over the past few days. Economists at Commerzbank expect the EUR/CHF to extend its grind higher.

Switzerland’s status-quo in monetary policy to continue

“At present, there is little reason for the SNB to abandon its stance that its current monetary policy is appropriate. Amongst ECB members, on the other hand, there are an increasing number of voices favouring a first-rate hike in July.”

“Unless the news flow in connection with the war in Ukraine deteriorates significantly or other factors such as recession worries greatly unsettle the markets, the Swiss franc is likely to be less in demand as a safe haven and the domestic very expansionary monetary policy will continue to put pressure on the franc.”

“Unless the ECB sends out dovish signals again all of a sudden, which we do not expect, EUR/CHF might appreciate a little further.”