The euro-Swiss franc (EUR/CHF) exchange rate could fall below parity, even to $0.97, analysts at investment bank Credit Suisse forecast.

  • The SNB raised the interest rate by 50 bps to -0.25% in June
  • This is the first hike since 2007
  • Significantly, the SNB decided to hike before the ECB
  • For more interesting articles, see the homepage of

Frank strengthens, EUR/CHF exchange rate near parity

The Swiss franc continues to strengthen against the euro in response to central bank action. The SNB in mid-June joined the camp of hawkish central banks by surprising the market and raising interest rates by 50 bps. This brought the key interest rate to -0.25%.

The move was justified as a measure to curb inflation: the Swiss CPI stood at 2.9% in May. The SNB has revised its long-term inflation forecasts, leading to higher expectations of a rate hike.

See also:”USDCAD – a possible downward correction”

Furthermore, the Swiss franc is no longer described as ‘highly valued’ by the SNB and currency interventions are no longer just a one-way action, meaning that they have entered the central bank’s toolkit.

– Most of the increase in headline inflation is due to import prices, but domestic prices are also rising. To mitigate price pressures from abroad, the SNB is tolerating a stronger franc in nominal terms, in line with inflation differences between Switzerland and its main trading partners. – Credit Suisse analysts pointed out. – A narrowing of the interest rate differential between the euro area and Switzerland should help this outcome.

EUR/CHF exchange rate. Source:

-As we see more downside factors to our long-held bearish view on EUR/CHF, we are lowering our target to $0.97 from $0.99. – emphasised analysts at Credit Suisse.


I invite you to my – Friday’s, 01 th of July at 08:00-09:00 GMT +1 (London time)  live trading session here:

The above analysis is based on the PA+MACD strategy, a detailed description of which you can read HERE . I will talk more about the PA+MACD strategy applied to these currency pairs during the live trading sessions which you can attend from Monday to Friday.
More current analysis on the group : Trade with Dargo

In our Facebook group, which you can join anytime: you will find 5 simple strategies on which my trading is based. There, every day  we post fresh analyses of currency pairs and commodities. You can also visit my channel where I post my trading ideas:




Error, group does not exist! Check your syntax! (ID: 3)