EUR/CHF remains steady around 0.9300 as investors assess Eurozone CPI and anticipate Swiss economic data

Euro Steadies Against Swiss Franc Amid Inflation Data

The Euro (EUR) maintained its position versus the Swiss Franc (CHF) on Wednesday, as investors evaluated the latest preliminary inflation statistics from the Eurozone. At the time of reporting, EUR/CHF hovered near 0.9302, showing minimal movement throughout the session.

Eurozone Inflation Remains Stable

According to figures published earlier by Eurostat, Eurozone inflation held steady as 2025 drew to a close. The Harmonized Index of Consumer Prices (HICP) increased by 2.0% year-on-year in December, aligning with analyst forecasts and easing from November’s 2.1%. On a monthly basis, headline inflation climbed 0.2%, recovering from a 0.3% drop in the previous month.

Core inflation, which excludes the more volatile costs of food and energy, eased slightly. The core HICP rose 2.3% year-on-year, just under the 2.4% market consensus and down from the prior 2.4%. Month-on-month, core inflation advanced 0.3%, reversing a 0.5% decrease seen in November.

Mixed Signals for the ECB

These results indicate a modest cooling in annual inflation, though the uptick in monthly data suggests the disinflation process is inconsistent. With headline inflation matching the European Central Bank’s 2% target, the numbers back the ECB’s decision to leave interest rates unchanged, especially after Tuesday’s final Composite Purchasing Managers Index (PMI) figures came in slightly below expectations.

German Inflation and PMI Data

Earlier in the week, Germany—the Eurozone’s largest economy—reported a sharper slowdown in inflation. The country’s Consumer Price Index (CPI) rose 1.8% year-on-year in December, down from 2.3% in November, while the monthly figure was unchanged at 0%. Final Composite PMI readings also fell short of forecasts.

Market Outlook and Swiss Data Ahead

A recent BHH Market View report notes that the swaps curve anticipates stable interest rates over the coming year, with a possible 25 basis point increase to 2.25% projected within two years.

Looking forward, market participants are awaiting Swiss inflation data scheduled for release on Thursday. Economists predict the Swiss Consumer Price Index (CPI) will dip 0.1% month-on-month in December, following a 0.2% decline previously, while annual inflation is expected to edge up to 0.1% from 0.0%.

If the Swiss inflation figures fall short of expectations, concerns about persistently low inflation could intensify, sparking speculation about a potential return to negative interest rates. However, Swiss National Bank (SNB) officials have consistently emphasized that the threshold for reintroducing negative rates remains high.