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Euro jumps vs Swiss franc after SNB decision and German IFO data
EUR/CHF climbed 0.24% to around 0.9415 after an intraday high of 0.9433, with the SNB keeping its key rate at 0% and raising inflation forecasts slightly.
EUR/CHF rose 0.24% on Thursday, trading near 0.9415 after hitting an intraday high of 0.9433, as the Swiss National Bank left its key interest rate unchanged at 0%. FXStreet said the move was helped by weakness in the Swiss franc, while the euro also found support from stronger-than-expected German economic data.
FXStreet noted the SNB lifted its inflation forecasts slightly, projecting price growth of 0.7% this year and 0.8% in both 2027 and 2028. The central bank said medium-term inflationary pressure has increased only slightly, expects inflation to rise further in the fourth quarter, and then decline over the course of 2027.
The SNB attributed part of the franc’s recent depreciation to widening interest rate differentials with other currency areas and said Switzerland’s low interest rates make the currency less attractive versus the euro and the US dollar. It also reiterated it remains willing to intervene in the foreign exchange market if necessary, while flagging global developments and Middle East tensions, trade policy uncertainty, and exchange-rate developments as key risks.
On the euro side, German data supported the pair: the IFO Business Climate Index rose to 89.9 in September from 88.8 in August, beating consensus of 89. The Current Assessment Index improved to 89.5 from 88.5, and the Expectations Index climbed to 90.4, its highest level since February.