CHF: SNB stick to the overvalued franc script – ING

Swiss National Bank's Jordan continued to cite the franc as being overvalued, which has given some impetus to both EUR/CHF upside, notes the analysis team at ING.

Key Quotes

“EZ political risks are likely to keep the EUR soft, with noise over Catalan independence set to remain in place.”

“The pickup in CPI to 0.7% hasn't changed the view that the SNB will sit tight with policy settings far longer than the ECB – and that EUR/CHF is set to move significantly higher on monetary divergence. EUR/CHF 1.20 remains in sight over 3-6 months.”