Thursday is crucial for the CHF. The SNB will announce its policy decision as well as publishing its Monetary Policy Statement. Many in the market expect the EUR/CHF floor to be raised at the meeting. But this is not our view. We agree that there is a very strong case for further loosening of monetary policy in Switzerland but that the extreme market uncertainty about the euro area sovereign debt crisis means that the SNB will probably wait until the situation is somewhat calmer.

source: BarCap