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Swiss franc likely to stay rangebound near 0.9200 vs euro

FXStreet cites SNB foreign currency purchases in the first quarter to counter speculative franc buying and keep EUR/CHF near 0.9200 over the next three months.

Reported · Written up by our desk · Major Pairs

The Swiss franc is holding in a tight band against the euro, with the Swiss National Bank working to limit safe-haven inflows tied to worsening geopolitical concerns, according to FXStreet.

While the ECB’s restrictive stance and recent rate hikes have supported the euro, the SNB has relied on direct foreign exchange intervention to prevent the franc from appreciating too much.

FXStreet cites Rabobank’s view that the EUR/CHF pair should consolidate around the 0.9200 level on a three month horizon, with a slight upside bias for the euro supported by relative ECB hawkishness.

The article also points to official data showing the SNB purchased billions in foreign currency during the first quarter, and notes SNB President Martin Schlegel reiterated that intervention remains its preferred first line of defense as domestic inflation stays low and growth risks appear modest.

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