In January the Swiss Franc weakened versus the Euro from 0.9880 to 0.9968. Economists at ING expect the EUR/CHF pair to remain supported.

Case for nominal CHF appreciation softens

“The case for further nominal CHF appreciation appears to be weakening. Foreign inflation is falling, meaning less nominal CHF appreciation is required to keep the real CHF stable. And CPI in Switzerland is dipping back under 3%.”

“Yet January Swiss CPI could spike higher again and we suspect the SNB will hike another 50 bps again in March (to match some of the ECB tightening).”

“Rate differentials moving in favour of the Euro and the risk rally should help EUR/CHF – but the view is mixed.”