EUR/CHF dips as Eurozone PMIs highlight uneven recovery, SNB in focus

• EUR/CHF retreats after a three-day winning streak as the Euro loses traction.
• Eurozone HCOB flash PMIs show services expanding while manufacturing slips back into contraction.
• Focus turns to Switzerland’s ZEW survey on Wednesday and the SNB policy decision on Thursday.

EUR/CHF trades on the back foot on Tuesday, snapping a three-day winning streak. The Euro struggles to find traction after the latest HCOB flash Purchasing Managers Index (PMIs) pointed to an uneven recovery in the bloc, with services expanding but manufacturing slipping back into contraction.

At the time of writing, the cross is trading around 0.9346 in the American session, pulling back after briefly touching its highest level since September 8 earlier in the day. The Swiss Franc attracts safe-haven demand while Euro bulls remain cautious ahead of key events on the Swiss calendar.

The Eurozone Composite PMI rose to 51.2 in September’s preliminary reading, slightly above expectations of 51.1 and higher than 51.0 in August. The Services PMI improved to 51.4, rising from 50.5 in August and beating expectations of 50.5. In contrast, the Manufacturing PMI slipped back into contraction, easing to 49.5, well below the forecast of 50.9 and down from 50.7 in August.

Survey details revealed that new business orders stagnated, signaling that the rebound in activity lacks fresh momentum. Job creation has cooled, while easing input and output prices suggest softer inflation pressures. Germany’s services sector led the expansion, but France remained in contraction, underscoring regional divergence.

On the Swiss side, focus shifts to Wednesday’s ZEW Survey Expectations, a key gauge of investor sentiment, followed by Thursday’s Swiss National Bank (SNB) interest rate decision. Markets widely expect the SNB to hold rates at 0.00%, but any signals on inflation outlook or currency strength could stir volatility in the franc. If policymakers highlight CHF’s resilience as a risk to exports, traders may brace for potential intervention, keeping EUR/CHF tilted to the downside in the near term.