The Swiss franc is now testing its lowest levels of the year against the euro, following the inflation report published here. The data confirms that price pressures in the Swiss economy remain just below 2%, which currently places the SNB in a rather enviable position among major central banks.
While most major central banks are trying to find a solution to lower rates, the SNB has already done so. The question is: will they wait or be the ones to act first? The odds of a rate cut in March are now around 55% and a rate cut is fully priced in for June.
Given that the SNB tends to surprise, I would say March will likely remain a live meeting.
And this is perhaps what traders are also seeing by pushing the franc down at the moment. EUR/CHF is currently testing its January high at 0.9473, with USD/CHF at a two-month high near 0.8800 and its 100-day moving average near 0.8807.