EUR/CHF remains above 0.9400 as as Euro gains on cautious ECB outlook

• EUR/CHF appreciates as the Euro receives support from a cautious tone surrounding the ECB policy outlook.
• Traders believe the ECB concluded its easing cycle in July after delivering eight rate cuts over the past year.
• A decline in Swiss Producer and Import Prices heightens the chances of the SNB moving rates into negative territory.

EUR/CHF holds gains after registering losses in the previous session, trading around 0.9410 during the Asian hours on Friday. The currency cross recovers its losses as the Euro (EUR) receives support, driven by traders' expectations that the European Central Bank (ECB) has ended its easing cycle in July after eight cuts over the past year, leaving borrowing costs at their lowest since November 2022.

However, the Euro faced challenges as Eurostat reported on Thursday that monthly industrial production in the Eurozone dropped 1.3% in June, falling short of the 1.0% decline expected, reversing May's upwardly revised 1.1% gain from 1.7%. Meanwhile, output growth slowed sharply to 0.2% YoY, missing the 1.7% forecast and down from a revised 3.1% in May. The European Union (EU) economic docket will be absent as there are no scheduled events due to the Feast of Our Lady of Heaven.

The Swiss Franc (CHF) could come under pressure as recent data show a continued decline in goods and services prices in Switzerland. Softer Producer and Import Prices increase the likelihood of the Swiss National Bank (SNB) pushing interest rates into negative territory.

Thursday's data revealed a 0.9% year-over-year drop in Producer and Import Prices for July, steeper than June's 0.7% fall. On a monthly basis, prices slipped 0.2%, following a 0.1% decline in the previous month.