Since the recent spike in energy prices in Europe, the euro has again weakened slightly against the franc. Erste Group Research analysts expect the pair EUR/CHF continue its downward move.
The Swiss National Bank will raise interest rates another 25 basis points
“We currently expect the situation in the energy markets in Europe to soften from the end of October. In this environment, the euro should be able to strengthen a bit against the Swiss franc.”
“In the short term, the upcoming parliamentary elections in Italy (September 25) also pose a new risk of a weakening of the euro.”
“The short-term evolution of the exchange rate will also largely depend on the next SNB decision on interest rates at its meeting on September 22. Currently, we expect the SNB to raise interest rates by another 25 basis points .”
“Should geopolitical crises escalate, the Swiss franc could strengthen further against the euro at any time.”
Source: Fx Street
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