Jane Foley, Senior FX Strategist at Rabobank, expects the Swiss franc to remain underpinned by safe-haven demand over the coming months. Consequently, the EUR/CHF pair is forecast at 1.08 on a three-month horizon.

“Given the SNB’s expectations that the recent push higher in inflation is set to be transitory, currency strength is set to remain a concern for policy-makers.”

“In our view, EUR/CHF can edge higher over the medium-term. However, the risk of a slowdown in growth in the Eurozone and Switzerland towards the end of the year could keep investors nervous.”

“On the back of safe-haven demand, this could keep EUR/CHF close to the 1.08 level on a three-month view.”

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