EUR/CHF continues to edge lower after September’s spike to 0.97. Economists at ING analyze Franc’s outlook.
SNB will have to get a stronger Swiss Franc via a lower EUR/CHF
The sense that the SNB has ‘got the Swiss Franc’s back’ has helped make it the strongest G10 currency this year. With the Dollar looking like it wants to stay strong over coming months, the SNB will have to get a stronger Swiss Franc via a lower EUR/CHF. That is why we can see it trading back to 0.95 over coming months.
Also helping EUR/CHF lower should be European political developments and the risk that a re-introduction of the Stability and Growth Pact collides with some loose fiscal policies in southern Europe.
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