Economists at ING analyze SNB’s policy outlook and its implications for the Swiss Franc (CHF).

SNB expected to remain hawkish and hike 25 bps at its September meeting

The Swiss National Bank (SNB) is expected to remain hawkish and hike 25 bps at its September meeting. The SNB also continues to guide the nominal Swiss Franc higher.

Given that USD/CHF is now rallying, the SNB may need more of that trade-weighted Swiss Franc appreciation to come via EUR/CHF. That could mean that 0.9650 now proves the top of a new – and lower – 0.9500-0.9650 range.