SNB’s Weaker Franc Stance Limits CHF Upside Against Euro, Says Commerzbank

Commerzbank’s Michael Pfister notes the Swiss National Bank has shifted toward accepting a weaker franc, altering the inflation outlook. The pass-through from a lower CHF to consumer prices remains moderate, meaning the SNB faces less pressure to uphold a strong currency.

As a result, the franc is likely to stay capped against the euro, with its safe-haven appeal tempered by the central bank’s softer stance. The analysis suggests that the EUR/CHF cross could continue to drift higher if the SNB’s tolerance persists.