There’s a lot soul-searching in Switzerland after the nation was slapped with 39% US tariffs final week, ING’s FX analyst Chris Turner notes.
EUR/CHF edges greater as Switzerland braces for US tariffs
“If these tariffs stick, it will add to the disinflationary forces in Switzerland, that are protecting CPI close to 0% year-on-year. EUR/CHF is beginning to right slightly greater on the information, although any last-minute deal this week forward of the tariff implementation on 8 August may see EUR/CHF reverse.”
“We do not see a sustained rally in EUR/CHF till the ECB has undoubtedly completed its easing cycle – one thing we could not know for sure till subsequent yr.”
