CIBC Research discusses CHF outlook and holds a range-bound bias but prefers to buy CHF as a protection over the coming months.

"Although the carry trade has performed well in FX over the past couple of months, the trade-weighted CHF has perked up over 3.6% since reaching lows in late-April. Of course, the bulk of the gain in CHF has been due to currency depreciation of its largest trading partners – namely CNH, EUR, USD, and GBP. With EUR/CHF at the 1.10 handle, we don’t believe that EUR/CHF can head much lower before the SNB intervenes. That being said, upside in EUR/CHF and USD/CHF doesn’t look likely either, with both the Fed and ECB erring dovish, and with a soft European manufacturing sector. With a range-bound outlook for CHF, we prefer a bias to buy CHF as protection, should trade concerns resurface, or should Brexit get out of hand," CIBC adds.