EUR/CHF: SNB policy rate can go negative again – ING

EUR/CHF remains on the low near 0.93, ING’s Chris Turner notes.  

EUR/CHF to grind towards 0.92

“In August we had felt that EUR/CHF would stay offered for the rest of the year and recent events only add to that conviction.”

“What interests us is whether the Swiss National Bank will take rates below 0.50% in this easing cycle (we think not). And spread compression should weigh on EUR/CHF as the ECB cuts rates 150bp into next summer.”

“Expect EUR/CHF to grind towards 0.92 – with the main risk now probably being an SNB official saying the policy rate could go negative again after all.”