Hawkish SNB to keep USD/CHF offered, targeting May's 0.8820 low – ING

FXStreet Insights Team FXStreet

The Swiss National Bank (SNB) meets to set rates today. Economists at ING analyze CHF's outlook ahead of the decision.

Majority of economists are going for a 25 bps hike

The majority of economists are going for a 25 bps hike, but a sizable minority look for 50 bps.

Recent SNB rhetoric has remained hawkish despite core inflation dropping below 2% year-on-year. Last September, we estimated that the SNB wanted to engineer 5% nominal appreciation per year to keep the real CHF stable. That is roughly what has happened. Where we were wrong is that it has come more through USD/CHF than EUR/CHF.

Expect a hawkish SNB today to keep USD/CHF offered – targeting May's 0.8820 low.

See – SNB Preview: Two scenarios and their implications for EUR/CHF – Credit Suisse

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