The CHF to EUR exchange rate is currently range-bound.
Key drivers include:
- The Swiss National Bank (SNB) has lowered interest rates to 0.5%, heightening the interest rate differential against the Eurozone.
- Economic uncertainty, exacerbated by a significant tariff on Swiss exports, risks weakening the Swiss economy and currency.
- Eurozone GDP is projected to grow by 1.6%, while inflation pressures continue to shape the ECB’s monetary policy.
Near-term trading is expected to remain stable within a narrow band around current price levels. Market forecasts suggest that the CHF may trend towards the EUR as the ECB maintains a cautious stance.
Upside risks could stem from improved global economic conditions, potentially increasing demand for Swiss exports. Conversely, further economic pressures from increased tariffs or geopolitical issues may negatively impact the Swiss franc's strength, pushing it lower against the euro.