Since the recent escalation of energy price hikes in Europe, the euro has weakened slightly again against the franc. Analysts at Erste Group Research expect the EUR/CHF pair to continue its move downward.
Swiss National Bank to raise interest rates by another 25 bps
“We currently expect the situation on the energy markets in Europe to ease from the end of October. In this environment, the euro should be able to strengthen somewhat against the Swiss franc.”
“In the short-term, the upcoming parliamentary elections in Italy (September 25) also pose a further risk of a weaker euro.”
“The short-term development of the exchange rate will also depend heavily on the SNB's next interest rate decision at its meeting on September 22. Currently, we expect the SNB to raise interest rates by another 25 basis points.”
“In the event of escalating geopolitical crises, the Swiss franc could strengthen further against the euro at any time.”