The CHF is likely to enjoy a residual bid following the SNB's threat to act on inflation pressures, according to economists at TD Securities. The EUR/CHF pair has broken below the key support of 1.0325, opening up additional losses.

Downside remains favored as SNB ready to intervene

“Swiss franc leads today's session following hawkish comments from SNB's Jordan on Wednesday: ‘SNB ready to act if inflation pressures continue’.”

“For EUR/CHF, 1.0325 was key support, which was broken during this morning's European session; we think a downside extension is probable (and exposing 1.00/1.02) given the resumption of traditional risk-on/risk-off dynamics in the broader FX complex.”