The combination of disinflationary dynamics and an SNB that is increasingly mindful of a strong currency points towards a graduated weakening in the CHF.

Currently, the market anticipates more ECB activism into mid-year (-53 bps) than for the SNB (-42 bps). We would view both as likely to consider a more modest degree of policy easing. 

Given the prospect of a more aggressive paring in ECB rate cut assumptions this points towards EUR/CHF heading towards the 200-Day Moving Average, modestly above 0.9600 into mid-2024.