As economists at Commerzbank note, it remains to be seen how quickly the Swiss National Bank (SNB) will actually implement a lift-off. Until then, the euro is set to outperform the franc.

SNB’s communication U-turn was overdue

“It can be assumed that the SNB is likely to be interested in ending its negative interest rate policy. It would therefore make sense to follow the ECB’s course. Seeing that the latter is likely to hike its key rate in July it is high time for the SNB to make a communication U-turn.” 

“If price pressure in Switzerland was not going to increase over the coming months the SNB might take its time with a lift-off. Until then the EUR might have the upper hand over CHF due to the more hawkish ECB.”