The Swiss Franc rose after the SNB hike. Economists at ING expect the EUR/CHF pair to stabilise above the 1.00 level.

Franc gains likely to emerge versus the Dollar

“The SNB actively favours a stronger CHF to limit imported inflation, but the ECB-SNB policy differential and an improvement in European sentiment are tilting the bias towards a stronger EUR/CHF at the moment, where a stabilisation above parity seems likely in light of recent developments.”

The channel where we could see the SNB hawkishness play in favour of CHF is probably through USD/CHF, where we may see a break below the 0.9080 early-February lows, also aided by the generalised USD weakness.”