EUR/CHF has remained reasonably offered since the Swiss National Bank (SNB) surprised with a 50 bps hike in June. Economists at ING expect the pair to extend its decline towards 0.95.

SNB looks set for a 75 bps hike in September

“SNB President Jordan is sounding quite hawkish at the moment – suggesting inflation is driven by much broader factors than Ukraine – e.g. energy transition, de-globalisation, demographics.”

“It seems fair to expect a 75 bps hike from the SNB in late Sep and a hawkish setting should mean it continues to guide EUR/CHF lower over coming months – to 0.95 – to keep the real CHF stable.”