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EUR/CHF still has some upside scope – Commerzbank

EUR/CHF is trading close to parity again. Economists at Commerzbank believe that the pair could extend its advance.

Swiss National Bank can still sit back for now

“During the last monetary policy evaluation, the head of the SNB Thomas Jordan had pointed out that the franc would contribute to dampening inflation pressure: at the time CHF had appreciated by 7% since June.”

“The franc has not completely retraced its gains which might explain why the SNB can still sit back for now. However, it also means that EUR/CHF still has some upside scope until the SNB might begin to feel unhappy about the developments.”

 

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