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Swiss franc weakens versus euro as yield gap widens

The report notes EUR/CHF is at new highs, with markets pricing more ECB hikes while the SNB is expected to keep rates at 0.00% until 2027.

Reported · Written up by our desk · Major Pairs

MUFG’s Lee Hardman says the Swiss franc is continuing to lose ground versus the euro, pushing EUR/CHF to new highs as widening yield differentials favor the euro.

FXStreet notes that markets are pricing further European Central Bank hikes, while Bloomberg cited expectations that the Swiss National Bank may keep Swiss rates at 0.00% until 2027, given it appears comfortable with the inflation outlook.

The SNB is described as willing to sell Swiss francs only to limit excessive appreciation, a policy stance that MUFG argues keeps downside pressure on CHF.

FXStreet also highlights broader market context for the euro and dollar, noting attention on the Federal Reserve’s upcoming policy decision for fresh direction.

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