Price pressures in Switzerland have eased somewhat recently. Nevertheless, the SNB remains concerned about second-round effects. It is therefore likely to remain hawkish for the time being, favouring a strong Franc. However, if price pressures continue to ease over the course of the year, it is likely to tolerate a moderately weaker CHF.

And with the ECB likely to remain quite hawkish, the EUR should be supported from that side. Against this background, we see scope for the Franc to weaken somewhat against the EUR over the course of the year.