ING Warns EUR/CHF Upside Risks Rise on ECB Policy Uncertainty

ING now flags growing near-term risk of Swiss franc weakness versus the euro after ECB policy doubts intensified. The shift follows the SNB Vice Chairman’s 21 May statement that the central bank retains an elevated willingness to intervene against excessive franc strength. With interest-rate differentials potentially favoring the euro and the SNB appearing tolerant of a softer franc, ING sees a sustained break above 0.9800 as the key trigger, opening the way toward parity at 1.0000. A move back to 0.9500 is viewed as less probable in the current environment.