EUR/CHF to head back to the 1.09 mark on high eurozone CPI – ING

EUR/CHF is steady after a quarterly Swiss National Bank meeting that was another non-event for FX markets. The eurozone will release Consumer Price Index data on Thursday, and a high reading could drag the EUR/CHF pair back to the 1.09 level, in the view of analysts at ING.

Same old SNB, but how much FX did they buy in 2Q?

“Suffice to say, the SNB slightly cut growth and raised inflation forecasts, but core policy remains unchanged. It will be one of the last central banks in the world to raise rates.”

“This week sees the SNB release details on its FX intervention in 2Q21. These had dropped to just CHF296 M in 1Q. EUR/CHF was naturally bid through most of 2Q meaning that FX intervention will probably be as low – but 3Q will be another matter.”

“We have noticed recently that EUR/CHF turned bid when the ECB hawks piped up. Another high Eurozone CPI figure this week could send EUR/CHF back to 1.09.”