Goldman Sachs expects the Swiss franc to strengthen against the euro amid rising inflation pressures.
March inflation data showed a smaller-than-expected pick-up, but a sharp rise in manufacturing PMI prices signals further inflationary risk.
The SNB’s near-zero headline inflation base has limited its willingness to intervene, potentially allowing the franc to appreciate.
Goldman favors outright short EUR/CHF exposure medium-term, anticipating the franc’s outperformance as energy-driven inflation persists.