Commerzbank: It will take some time before EURCHF will seriously deal with parity

Commerzbank economists report that the Swiss National Bank (SNB) intends to continue fighting against excessive inflation. Because of this the EURCHF pair probably won't be traded above parity.

Data for November confirmed that inflation in Switzerland is 3% and exceeds the target of the SNB. Vice President Martin Schlegel clearly stated that the SNB will take measures to fight against excessive inflation.

Since the end of September, the franc has devalued by a bit more than 3.5% against the euro. The SNB accepted this fact peacefully, but foreign exchange market participants can never be completely sure of when the SNB will stop acting and inflation will remain much higher than its target level. As a result, the assumption that it will take some time before the EURCHF gets serious about parity emerged.