Economists at ING expect the Swiss Franc to strengthen and forecast EUR/CHF at the 0.9700 zone.

Swiss Franc in demand

“We think the defensive (non-correlated) properties of the Swiss Franc are in demand. Expect that to continue to be the case until the dust starts to settle in the US regional banking crisis.”

“With Swiss inflation (today released at 2.6% YoY for April) still dramatically lower than that in the Eurozone, the SNB will continue to seek nominal CHF appreciation.”

 “We favour EUR/CHF to grind down to the 0.9700 area – lows seen when the US banking crisis first broke.”