CHF: Strong industrial activity points to healthy 3Q Swiss GDP - ING

EUR/CHF ended the week on a strong footing despite some very strong 3Q17 IP data (+8.6% YoY, highest since early 2008), which imparts upside risk to 3Q17 GDP released on Thurs, where consensus now 0.6% QoQ, but some analysts are going for 1% QoQ, according to analysts at ING.

Key Quotes

“We doubt whether that will lift CHF.”

“Instead, we continue to favour EUR/CHF, probably to a new high for the year this week. Triggering the move could be any progress on Merkel forming a coalition with the SPD, or any upside surprises with the flash release of Eurozone CPI. EUR/CHF looks well supported, SNB still dovish.”