SNB Expected to Stand Pat on Interest Rates Amid EUR/CHF Surge

The Swiss Franc has weakened significantly since July, with EUR/CHF rising steadily from around 0.92 to approach 0.95.

This weakness is largely due to increased expectations of European Central Bank (ECB) tightening and higher oil prices.

However, the market has not priced in a similar degree of tightening from the Swiss National Bank (SNB), leading Commerzbank's Michael Pfister to suggest that the SNB is likely comfortable with the current exchange rate levels.

Pfister argues that the SNB will likely keep its guidance largely unchanged, as it has no need to intervene to strengthen the Franc at this time.