Credit Agricole CIB Research maintains a bearish CHF bias over the coming weeks.
"The CHF has been rather well supported for most of the week, in particular against the EUR. While this may be partly due to more unstable risk sentiment and on the back of the ECB’s determination to let inflation overshoot in order to keep central bank rate expectations capped for longer, we believe price action experienced of late will prove transitory more than anything else," CACIB notes.
"After all, the SNB is likely to do its utmost in order to prevent policy differentials from widening while risk sentiment is likely to stabilise again. Last but not least, CHF positioning still appears broadly stable," CACIB adds.