Swiss Franc Growth May Limit EUR/CHF Upside Potential

Rabobank's Senior FX Strategist Jane Foley notes that Switzerland's economy has shown stronger-than-expected growth in Q2, leading to a resilient economy.

Foley attributes this growth to benign inflation and zero interest rates. She also points out that the EUR/CHF pair is still in an uptrend since late May, but strong Swiss growth could limit its upside potential and increase sideways trading.

The SNB's policy of keeping a safe haven currency has been impacted by intervention threats and zero policy rates, making it less appealing to investors. The ECB's rate hike in June added momentum to the EUR/CHF uptrend.