Rabobank forecasts EUR/CHF consolidation near 0.92 as ECB policy supports the euro and SNB intervention limits franc strength.
The European Central Bank’s hawkish stance has reduced pressure on the EUR/CHF exchange rate, supporting the euro near 0.92. Rabobank expects consolidation around this level over the next three months, with a slight upside bias due to ECB policy.
EUR/CHF has traded in a narrow range slightly below its one-year average, bolstered by the ECB’s rate hikes. The central bank raised rates last month, and markets anticipate another increase soon. Meanwhile, the Swiss National Bank remains cautious amid inflation risks.
Analysts suggest potential SNB rate hikes later this year if Swiss inflation rises in Q3. However, range trading is expected for both EUR/CHF and USD/CHF in the near term as intervention risks persist.