Euro trims losses against Swiss Franc after ECB Monetary Policy Accounts reaffirm steady stance

• EUR/CHF rebounds toward 0.9320 after briefly testing the 0.9300 mark earlier in the day.
• ECB policymakers see rates in a “good place,” signaling confidence in the disinflation process.
• French political turmoil continues to cloud investor sentiment, limiting the Euro’s upside.

The Euro (EUR) edges higher against the Swiss Franc (CHF) on Thursday, erasing earlier losses after a volatile start to the day. At the time of writing, EUR/CHF is trading around 0.9320, bouncing off intraday lows near 0.9300 and attempting a modest recovery after briefly slipping to a two-month low earlier in the week.

The rebound came as investors digested the European Central Bank’s (ECB) Monetary Policy Meeting Accounts from the September 10–11 meeting, which showed policymakers confident that interest rates are in a “good place” to guide inflation sustainably back to target. Officials noted that while inflation continues to ease, service prices remain sticky and wage growth is still elevated, though on a gradual downtrend.

Several members highlighted that keeping rates restrictive for longer would ensure inflation expectations remain anchored, particularly amid fiscal uncertainty in larger Eurozone economies.

Chief Economist Philip Lane proposed leaving rates unchanged, arguing that persistent uncertainty warranted caution. Meanwhile, Executive Board member Isabel Schnabel warned of the risk of “sudden and sharp” market corrections, underscoring concerns that premature policy shifts could trigger financial instability.

However, political uncertainty in France continues to weigh on regional sentiment. President Emmanuel Macron’s struggle to appoint a new prime minister after Sébastien Lecornu’s abrupt resignation has deepened concerns over France’s fiscal direction and ability to pass its 2026 budget.

In Switzerland, rising inflation expectations have reduced the likelihood of the Swiss National Bank (SNB) returning to negative rates. SNB Chairman Martin Schlegel recently signaled confidence that inflation could pick up in the coming quarters. The September CPI rose 0.2% YoY, marking the fourth consecutive month of growth but coming in below the 0.3% forecast. On a monthly basis, prices fell 0.2%, a slightly faster pace than August’s 0.1% decline.