Policy rates in G10 countries (except Japan) appear to be on the decline, FX analysts say. ING Francesco Pesole and Chris Turner.
EUR/CHF may struggle to stay above 0.95
“We expect at least another 125bps of ECB easing by next summer, if not 175bps. However, Switzerland is closer to the zero bound restriction, and markets are reluctant to set the SNB’s policy rate below 0.50% – just 75bps below current levels. Spread compression could therefore weigh on EUR/CHF through 2025.”
“We also believe that the SNB is paying close attention to the actual CHF. At the end of July, it was still about 4% below the highest levels seen in January 2024 and suggests that the SNB may not verbally intervene strongly until EUR/CHF is closer to the 0.91 area.”
“Geopolitics also mean that EUR/CHF may struggle to hold above 0.95.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
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