Even though it looked during the course of the week as if EUR/CHF might recover that is not going to be the case for now. Economists at Commerzbank analyze the pair’s outlook.
SNB is likely to tolerate the strong Franc
As long as the conflict in the Middle East is brewing and there are concerns about an escalation the Franc will remain bid as a safe haven and EUR/CHF will probably be comfortable below the 0.95 mark.
The inflation rate has fallen to 1.7%. It has reached the SNB’s target area of 0-2% but the bank remains cautious as it still fears second-round effects. It does not make any sense to hope for a sign from the SNB regarding a ‘strong Franc’ which might slow the downside pressure on the CHF.