EUR/CHF Grinds Against Weak Franc

The EUR/CHF exchange rate is experiencing upward pressure due to expectations of further interest rate hikes by the European Central Bank (ECB). The ECB's policy rate currently stands at 2.4%, compared to zero for the Swiss National Bank, creating a meaningful yield advantage for the euro.

Deutsche Bank predicts an ECB hike this week and another 25-basis-point move in December, which would further favor the Europeans. This interest rate differential is making the EUR/CHF pair an attractive long opportunity.

However, Christopher Lewis of DailyForex warns that a sustained break above the 0.95 level is necessary for the pair to make significant progress. For now, it appears to be consolidating below this resistance level.