The Franc continued to strengthen against the Euro in July. However, economists at Commerzbank still see a moderately weaker CHF in the course of the year.
SNB should increasingly tolerate a weaker Franc
We have adjusted our EUR/CHF forecast slightly downwards, but maintain the view that the Franc should weaken moderately medium-term.
Price pressures and the risk of second-round effects should continue to ease in the coming months so that the SNB could tolerate a weakening of the Franc to some extent. And with the ECB likely to remain quite hawkish, the EUR should be supported from that side.
Source: Commerzbank Research
