The Swiss National Bank’s (SNB) surprising decision in June to hike rates by 50 bps and signal more to come transformed its attitude to the franc. Therefore, economists at HSBC expect the EUR/CHF pair to extend its downfall.

Stable USD/CHF

“We expect the CHF is likely to strengthen further against the EUR and ‘risk on’ currencies, given the SNB’s shift in strategy, Eurozone growth concerns, and lingering Italian political risks.”

“We look for a more stable USD/CHF rate.”