A surprise SNB cut would likely carry EUR/CHF over 0.9700 and potentially USD/CHF sharply higher – ING

EUR/CHF is flying high at 0.9660. Economists at ING analyze the Swiss Franc (CHF) outlook ahead of the SNB meeting on Thursday.

EUR/USD could come lower on a major European central bank cutting rates

Data released today showed that the Swiss National Bank was still selling FX in the fourth quarter of last year. It might have flipped to FX buying this quarter, but confirmation of that will not emerge until late June. 

In focus, however, is Thursday's Swiss National Bank rate meeting, where some are looking for the first rate cut. That is not our house view, but we do not rule it out given that the SNB only meets four times per year compared to eight times for the ECB. 

A surprise SNB cut would likely carry EUR/CHF over 0.9700 and potentially USD/CHF sharply higher since EUR/USD could come lower on a major European central bank cutting rates.