Economists at HSBC hesitate about the animus of the Swiss National Bank (SNB) to tighten its monetary policy. Therefore, the EUR/CHF pair is set to move downward in the coming weeks.

The correction lower in USD/CHF may already have run its course

“We are not convinced that the SNB has truly pivoted toward the exit in its recent guidance, with the central case still pointing to negative rates and a willingness to intervene in FX. The 16 June SNB meeting will offer greater clarity on this.”

While EUR/CHF may grind lower in line with EUR/USD in the coming weeks, we think the correction lower in USD/CHF may already have run its course.”