Swiss franc’s recent depreciation unlikely to last

The Swiss franc has depreciated against the euro in the past month, despite the fact that the euro itself has weakened on a trade-weighted basis. This appears to be partly a correction following the sharp appreciation of the franc in the aftermath of the Swiss National Bank’s (SNB) abandonment of the ceiling it had set of 1.20 francs against the euro. Another driver has probably been the action of the SNB, which appears to have intervened to prevent the franc from appreciating too far.