Against the backdrop of more stubborn inflation, economists at Commerzbank have adjusted their forecast for the Franc slightly and now see it below parity against the EUR for a little longer.

Strong CHF is preferred

“Core inflation remains stubbornly above the SNB's inflation target. The SNB is therefore likely to raise its key rate again in June and prefer a strong Franc for the time being.”

“We have adjusted our forecast slightly, but continue to expect a moderately weaker Franc in the medium term. We, therefore, expect EUR/CHF to rise slowly towards 1.05 in the coming quarters.”

Source: Commerzbank Research