The Swiss franc /CHF) only knows one direction against the euro at present: up. On Tuesday, EUR/CHF even breached the 0.96 mark. Economists at Commerzbank expect to see further franc appreciation.

SNB interventions seem more like a leaning against the wind

Levels below parity have become normal. The increased uncertainty on the market, recession fears for the eurozone economy and high inflation levels combined with a hesitant ECB would make possible SNB interventions seem more like a leaning against the wind. As a result, their effect would be short-lived – if anything – as they would only limit the franc’s appreciation speed but would not prevent appreciation altogether.

“Of course, it can never be excluded that the SNB might intervene on the market every so often, but principally everything points towards further franc appreciation. In particular, while the situation for the euro seems unfavourable.”