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According to analysts at ING, events in Italy and Turkey are likely to continue to play their role in sending the CHF higher, but the threat of further Russian sanctions might also be at play here.

Key Quotes

“The US Senate is currently considering a much harsher set of measures, which would include sanctioning Russian sovereign debt for the first time. This, as well as the Italian BTP-Bund, spread moving out to the widest levels on the year are keeping the CHF in demand.”

“Locally the Swiss National Bank said that their policy of negative rates and FX intervention was still in play. EUR/CHF seemed to turn near 1.1250, where it did in August 2017, which could suggest some FX intervention is underway.”

“Away from the politics, the Swiss focus this week will be on July trade data and second quarter industrial production – unlikely to move CHF independently.”