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According to analysts at Wells Fargo, point out the Swiss National Bank’s dovish tone has not been followed through with interest rate action. They see the EUR/CHF rising modestly over the medium-term.

Key Quotes: 

“Despite the improving economy and the outlook for steady interest rate policy, we see limited prospects for Swiss franc strength and indeed expect moderate franc weakness versus the euro over time. The threat of foreign exchange intervention from the central bank persists, even though it has been somewhat less active in FX markets in recent weeks.”

“We still see the global economy on an overall recovering path despite some recent hints of activity softness as well as recent financial market strains. As long as the overall global economic recovery remains intact, a lessening in safe haven support could weigh on the Swiss franc.”

“We forecast the franc to weaken versus the euro over the medium-term, and see a reasonably steady Swiss franc versus the U.S. dollar.”