EUR/CHF is set to shrug off developments in Switzerland. Thus, the direction of the EUR/USD pair will determine the next EUR/CHF move, economists at HSBC report.

USD/CHF could move sideways in the coming weeks

“EUR/CHF is set to be driven by EUR/USD, with little scope for Swiss-related drivers to get traction.” 

“The Swiss National Bank (SNB) may be mindful of CHF weakness, but the recent moves have been modest and not enough to suggest action. The next SNB policy meeting is on 15 December, where the market is fully priced for a 50 bps hike and the 3 November release of Switzerland October CPI will be worth watching.” 

“We expect both EUR/USD and EUR/CHF to decline by a similar level, so this means USD/CHF could move sideways in the coming weeks.”