EUR/CHF, USD/CHF: Credit Agricole recommends selling CHF on rallies

The Swiss Franc recently declined, mainly because of the stabilized risk sentiment. This week, there are more statistics about Switzerland's economy. Inflation will attract attention. Prices should not increase. Not enough to prompt the SNB to ease its monetary policy. The SNB will be especially focused on the ECB's decisions.

Given the importance of the EUR/CHF as a driver of monetary conditions and the fact that the ECB could relax its policy Thursday, we believe that there is a downside risk for the pair. The SNB could soon follow in the footsteps of the ECB. The CHF should be sold on rallies against the USD and EUR.