CHF: Swiss franc to underperform ahead of Oct ECB - ING

EUR/CHF has held onto its gains despite the Catalan crisis and will also be digesting the outcome of the Austrian elections over the weekend, notes the research team at ING.

Key Quotes

“We remain constructive on EUR/CHF but are a little surprised that CHF sight deposits (Mon) haven't fallen more quickly - suggesting investors are retaining CHF longs.”

“Local events see September trade data on Thursday. Net trade had detracted from GDP in 2Q17; any softer data would reinforce the view that Swiss growth underperforms the Eurozone - and that the SNB will normalise policy later than ECB.”