Swiss Franc: Weakness before renewed strength – Commerzbank
Commerzbank FX analyst Michael Pfister argues that the Swiss Franc (CHF) will stay under pressure through 2026 as markets gradually price out expectations of a Swiss National Bank (SNB) rate hike.
Swiss Franc (CHF) analyst Michael Pfister from Commerzbank predicts the currency will remain under pressure through 2026 as markets adjust to the possibility of a Swiss National Bank (SNB) rate hike. He highlights low inflation in Switzerland, limited SNB intervention capabilities, and widening rate differentials between CHF and the European Central Bank (ECB).
Pfister anticipates CHF to rebound in 2027, but expects EUR/CHF to stabilize near 0.94 by the third quarter. Despite recent reports suggesting the SNB may keep rates unchanged until the year's end, the market still expects a rate increase by mid-2027. The SNB appears content with gradually pricing out these expectations, as a second ECB rate hike in September could further widen the differential and weaken CHF.
Over the medium term, the SNB's limited ability to intervene may allow CHF to appreciate once again, but Pfister maintains a stable EUR/CHF forecast of 0.94 by year's end.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- Swiss Franc ticks up against US Dollar despite bright Swiss ZEW economic expectations fxstreet.com
- Dollar weakens against dong e.vnexpress.net
