However, traders and investors should be cautious. The SNB has warned that it will remain active with currency interventions that could contain the strengthening of the franc.
However, the last point is highly controversial. A rate hike and strengthening the national currency vs. competitors both suppress inflation, so FX activity from the SNB is likely to reduce volatility but not reverse the market.
Over the last half-century, monetary and fiscal policy has helped the franc methodically strengthen against the euro and the Dollar. Recent actions by the SNB suggest that this historical trend will continue, bringing the EURCHF steadily below parity before the end of the year.
