Swiss franc set for further small depreciation

The Swiss franc was the worst performing major currency last month. While the franc’s depreciation has been stronger than we had anticipated, we still see it depreciating a little further against the euro over the next couple of years as very subdued inflation in Switzerland causes the SNB to lag behind the ECB in normalising monetary policy. But the big picture is that the franc is set to remain at a historically high level against the euro over the coming years.