There is much soul-searching in Switzerland after the country was slapped with 39% US tariffs last week, ING’s FX analyst Chris Turner notes.
EUR/CHF edges higher as Switzerland braces for US tariffs
“If those tariffs stick, this will add to the disinflationary forces in Switzerland, which are keeping CPI near 0% year-on-year. EUR/CHF is starting to correct a little higher on the news, though any last-minute deal this week ahead of the tariff implementation on 8 August could see EUR/CHF reverse.”
“We don’t see a sustained rally in EUR/CHF until the ECB has definitely finished its easing cycle – something we may not know for certain until next year.”
