Societe Generale analysts note pronounced Swiss Franc strength as EUR/CHF hits a new post‑2015 low, with the Swissie staying bid despite a risk‑on backdrop. They link the move mainly to Alphabet’s CHF bond issuance and some sell recommendations targeting 0.87/EUR, while stressing that the SNB still sees inflation on target and is unlikely to rush back to negative rates.

Swiss Franc outperformance and SNB stance

"The Swissie stays bid in early trading at the open, plumbing a new post-2015 low of 0.91237/EUR."

"SNB president Schlegel just last week reiterated that the bank is ready to return to negative rates if needed but that bar remains high as long as inflation is deemed to be on target over the next two years."

"The more plausible explanation for the currency outperformance on a ‘risk on’ day is the five-part bond issue in CHF by Alphabet."

"Sell recommendations with one house targeting 0.87/EUR may have amplified the price action."

"The SNB was confident at the December meeting (EUR/CHF 0.9328) that inflation is on target over the next two years."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)