Rabobank raises its 9-12 month EUR/CHF forecast to 0.95, citing resilient Swiss growth and low inflation limiting franc downside.
Switzerland’s stronger-than-expected Q2 GDP growth and economic resilience may temper losses in the Swiss franc against the euro, according to new analysis. Rabobank revised its 9-12 month EUR/CHF target to 0.95 from 0.94, noting that robust Swiss growth, low inflation, and zero interest rates could cap further upside in the pair.
EUR/CHF has trended gently higher since late May, outpacing earlier expectations. While the Swiss National Bank’s policy and safe-haven dynamics have historically supported the franc, recent data suggests reduced pressure from intervention threats and zero rates, diluting its appeal as a haven asset.
The SNB has previously intervened to weaken the franc, particularly during geopolitical tensions. However, recent economic data has not been sufficient to reverse the pair’s uptrend, though it may increase sideways trading.