EUR/CHF 0.5% after weak Swiss Consumer Price Index (CPI) data. Economists at Société Générale analyze the pair’s outlook.

Weak CPI opens door to March SNB cut

The good news for EUR/CHF is that inflation in Switzerland slowed to 1.3% and core declined to just 1.2%, the lowest since January 2022. A dovish pivot in March looked a dead cert after the comments of President Jordan in Davos last month. Weak CPI brings the possibility of a rate cut next month from 1.75%. 

It has been a tricky start to the year for EUR/CHF but positioning for a rate cut should mean EUR/CHF is at least tactically trying to turn a corner.