CHF: Merkel fallout - ING

Analysts at ING explain that the poor performance of the centre parties at the weekend German elections has seen EUR/CHF correct lower.

Key Quotes

“What that may mean for Italian elections in 1Q18 remains to be seen, but the rise of the AFD in Germany warns that the prospect of greater European integration suffers a setback.”

“Local events next see the Swiss business confidence index on Friday. A pickup is expected. Yet Swiss growth has been sluggish this year (eg SNB revising down 2017 GDP forecast to 1% from 1.5%) and we doubt any modest uptick in sentiment can help the CHF much.”