The Swiss franc was weaker against the dollar and the euro on Monday, but analysts expect the Swissie to gain against the euro as the European Central Bank cuts interest rates. "We expect the franc should rise further against the euro because the ECB has to cut rates more than the market currently expects. There is still too little market expectation for rate cuts from the ECB," said RZB analyst Ronald Plasser.
"Increasing risk aversion could also be a driver for this market as we believe stock markets will be weaker in coming weeks," Plasser said. Against the euro, the franc was weaker, trading at 1.4993 per euro compared to Friday's New York close of 1.4957. The franc was also lower against the dollar at 1.1206 per dollar versus 1.1128 on Friday following last week's US unemployment data. "This is a reaction to Friday. The unemployment data was not as bad as expected, plus it is backward-looking and there have been other PMIs that have stabilised," said Credit Suisse analyst.