Euro Stays Strong Against Swiss Franc as ECB Stands Firm, SNB May Cut More
The EUR/CHF is holding above 0.9400, now near 0.9410, as the Euro stays steady thanks to the European Central Bank (ECB) hinting it might pause rate cuts. The ECB has already lowered rates eight times in the past year, and traders think July’s cut could be the last for now.
The Swiss Franc is weaker after new data showed producer and import prices in Switzerland fell 0.9% in July compared to last year, more than the 0.7% drop in June. This bigger fall increases chances that the Swiss National Bank (SNB) might cut interest rates again, possibly even going back to negative rates.
The mix of a stronger euro outlook and a weaker franc is helping EUR/CHF stay above key levels.
Impact:
* If the ECB holds rates and the SNB cuts again, EUR/CHF could rise toward 0.9450.
* If the SNB surprises with a stronger stance, the pair could drop toward 0.9350.
