EUR/CHF: The direction of travel is back towards the 0.9800/0.9825 area over the coming months – ING

EUR/CHF has struggled to surpass the 1.005/1.0100 area. Economists at ING expect the pair to tick down toward 0.9800/0.9825.

The 1.0050/1.0100 area is becoming a hard ceiling 

“The SNB has been selling FX since 3Q last year and given Swiss inflation is still proving very sticky, it looks like the 1.0050/1.0100 area is becoming a hard ceiling for EUR/CHF in the first half of the year.”

“We would say the direction of travel here is back towards the 0.9800/0.9825 area over the coming months. It could even be lower were the SNB to surprise with a 75 bps hike on 23 March.”