The Swiss National Bank (SNB) meets today to set monetary policy. A hike would send the EUR/CHF pair 1-2% lower, economists at ING report.

SNB to guide EUR/CHF to the 0.98/1.00 area over the coming quarters

“A hike today would certainly be a big surprise and send EUR/CHF 1-2% lower. But even if the SNB does not hike today, it does have the FX firepower to strengthen its domestic currency.”

“Our call this year is that EUR/CHF upside is limited to the 1.05 area and that the SNB, one way or another, will guide EUR/CHF to the 0.98/1.00 area over the coming quarters.”