USDCHF Takes its Cues from EURUSD

While the SNB has abandoned the floor on EURCHF, it hasn't given up on its efforts to remain in step with ECB monetary policy. They can't afford to. In the drive to accommodation in the Eurozone, there is a lag from Switzerland and potentially a capital inflow that can drive the Franc higher. With the ECB contemplating a QE upgrade in December, the SNB may be forced to up the ante and subsequently drive USDCHF beyond parity.