EBC Markets Briefing | Swiss franc steadies ahead of population cap referendum

The Swiss franc was muted on Tuesday after Trump said a preliminary agreement to end the war has been signed by the US and Iran. Details have yet to be made public but risk-on mood was growing.

The SNB will keep its key policy rate for the rest of the year, according to all the economists who responded to a poll, as a stronger franc partly offset the impact of surging energy prices.

Chairman Martin Schlegel recently said medium-term inflation pressures barely changed, indicating a remote chance to act. The ECB has raised interest rates twice in 2026.

Cconsumer prices are expected to average 0.6% and 0.7% this year and next, according to the poll. The figure held steady in May after rising to a 16-month high in the previous month.

The European country, that has historically embraced free movement and foreign investment, is about to vote on whether to cap its population. Around 16% of the population come from the EU.

Companies headquartered in Switzerland have argued that immigration cap would dent competitive edge and weigh on economy. Some compares the referendum to the Brexit.

EBC Financial Group analyst said, the franc has formed a short-term bearish pullback. If it holds below the 0.7950 per dollar, further declines towards 0.79700 per dollar is in the cards.

Asset recap

As of market close on 15 June, among EBC major products, Micron Technology shares led gains after an investment bank's research team highlighted the memory chip leader's staggering AI-fuelled growth potential.

Truist Financial on Monday named Michael Lyons its next chief executive effective 1 September, setting up new leadership at a major regional lender that has underperformed its peers.

Despite gold's ongoing rally, UBS Group has slashed its near-term target on the yellow metal to $3,800 – 4,000, though the bank still sees prices reaching higher over the longer horizon.

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