The Swiss Franc eased a little against EUR over the past few days. Economists at Commerzbank believe that the EUR/CHF pair could extend its advance, but the Swiss National Bank is set to avoid a substantial depreciation of the CHF.

SNB likely to keep a close eye on Franc exchange rate

“As we assume that the price data, and in particular core inflation, from the Eurozone due to be published this week is unlikely to signal the all-clear regarding price pressure, further upside pressure in EUR/CHF might arise.”

“The SNB is likely to keep a close eye on Franc depreciation and – if necessary – intervene if the CHF were to depreciate too much, just as was the case last year.”

“The threat of interventions and hawkish SNB communication is likely to limit depreciation pressure on the Franc for now, at least while inflation pressure in Switzerland remains elevated.”