UBS: The Swiss National Bank is unlikely to make a strong reaction to the strengthening of the Swiss franc.

In a report, UBS global wealth management strategists stated that the Swiss National Bank is unlikely to strongly react to the recent rise in the Swiss franc. They noted that Switzerland's inflation outlook remains mild, but not deflationary, providing arguments against cutting interest rates. While there may be sporadic interventions in the foreign exchange market, the Swiss National Bank may not actively prevent further appreciation of the Swiss franc, as the currency's overvaluation is not extreme and deflation risks are low. They also mentioned that Germany's increase in fiscal spending should boost economic growth, supporting the euro and easing the strength of the Swiss franc. UBS forecasts the euro to rise to 0.95 against the Swiss franc within 12 months. Data from the London Stock Exchange Group shows stable trading of the euro against the Swiss franc at 0.9130, having touched a low of 0.9093 since 2015 on Tuesday.