Bearish reversal not seen on the horizon – ING

EUR/CHF is just below 0.9600 after the release of Swiss inflation data. Economists at ING analyze the pair’s outlook.

Ongoing disinflation continues to suggest the new SNB President may stay clear of more CHF-supporting measures

Switzerland has just published February CPI figures, which came in slightly hotter than expected. Headline inflation slowed from 1.3% to 1.2% and core from 1.2% to 1.1%, in line with consensus.

Despite the smaller-than-expected decline, ongoing disinflation continues to suggest the new SNB President (Jordan announced his resignation last week) may stay clear of more CHF-supporting measures.

EUR/CHF has had a strong run lately, but we had targeted a move to 0.9600 by the spring and do not see a bearish reversal on the horizon.