The Swiss National Bank’s (SNB) decision is due on Thursday. In any case, the Franc is unlikely to weaken significantly, economists at Commerzbank report.

Not an easy decision for the SNB next week

“We will have to wait and see whether the situation on the markets might ease over the course of the next week anyway. If that was to be the case the SNB might be able to follow suit and hike the key rate like the ECB.”

“After the CHF was able to benefit from its role as a safe haven at the start of the week this unsurprisingly changed when the focus turned onto Switzerland itself. The Franc’s depreciation potential is limited though as the SNB signalled clearly that it wants to avoid a significant weakening of the CHF due to high inflation rates and that if necessary, it would be prepared to intervene again.”