Economists at Rabobank expect the CHF to strengthen vs. the EUR in the second half of the year.

More tightening?

“In the next few weeks, the market will be assessing the risk of another 50 bps move from the SNB next month.  Another scenario is that the SNB could opt for a 25 bps move but will leave the door open for another tightening later in the year.”

“A hawkish SNB combined with a stagnationary outlook for the Eurozone in H2 has the potential to drive EUR/CHF lower in the coming months.”

“We have lowered our EUR/CHF forecasts moderately and are now targeting 0.97 on a 1-to-3-month view, and 0.96 at year-end.”