EUR/CHF fell to a new post-2015 low of 0.91237 per euro in early trading, with the Swiss franc strengthening even as market conditions were risk-on. The move was linked to factors in the Swiss franc funding market rather than broad risk sentiment.
One driver cited was a five-part bond issuance in Swiss francs by Alphabet, which can raise demand for the currency. Additional pressure on EUR/CHF was attributed to sell recommendations, including one that targeted 0.87 per euro.
The Swiss National Bank’s stance was described as steady, with inflation judged to be on target over the next two years. SNB president Martin Schlegel said the bank is prepared to return to negative rates if needed, but the threshold remains high under the current inflation outlook.
At the SNB’s December meeting, when EUR/CHF was 0.9328, the bank indicated confidence that inflation would stay on target for the next two years. The article noted it was produced with help from an AI tool and reviewed by an editor.
The Swiss franc is showing significant strength, pushing the EUR/CHF pair to new lows around 0.9123 not seen since the major policy shift in 2015. This move seems driven by specific market events like a large bond issue from Alphabet, rather than a change in economic fundamentals. With January 2026 Swiss inflation coming in at a tame 1.6%, the central bank is not under pressure to act against this strength.
We see the Swiss National Bank (SNB) remaining on the sidelines, creating a path for further franc appreciation. The bank stated at its December 2025 meeting that it sees inflation on target, and its president reiterated that the bar for returning to negative rates is high. This hands-off approach suggests they will tolerate a stronger currency for now, removing a major obstacle for traders betting on a lower EUR/CHF.
For the coming weeks, derivative traders should consider buying EUR/CHF put options to capitalize on the downward momentum. This strategy offers a defined risk—the premium paid for the option—while providing exposure to a potential drop towards the 0.87 level some analysts are targeting. The current environment mirrors past periods of franc strength where ignoring the trend proved costly.
Given the risk of a sudden policy shift, traders could also look at selling out-of-the-money EUR/CHF call spreads. One-month implied volatility is currently hovering around 6.5%, offering a reasonable premium for strategies that bet the pair will not experience a sharp rally. This approach profits if the pair continues to drift lower or sideways, benefiting from both the direction and the passage of time.
