EUR/CHF Bounces on SNB Decision and Stronger German Data

The EUR/CHF exchange rate has rebounded to around 0.9415 after reaching an intraday high of 0.9433 following the Swiss National Bank's (SNB) monetary policy decision on Thursday.

The SNB kept its key interest rate at 0%, matching market expectations, and slightly upgraded its inflation projections. The central bank now expects price growth of 0.7% this year and 0.8% in both 2027 and 2028.

SNB Chair Martin Schlegel noted that the recent weakening of the Swiss Franc partly reflects widening interest rate gaps with other major currencies, making it less appealing to investors compared to the Euro and US Dollar (USD).

The Euro also drew support from stronger German economic data, as Germany's IFO Business Climate Index rose to 89.9 in September, beating market consensus of 89.