The modest rate cut by ECB last week raises pressure on the Swiss National Bank for a rate cut. The Swiss interest rates are below the EUR rates across the horizon, which support EUR/CHF to move above 1.10. 

Switzerland GDP remained steady in Q3 and year on year growth rate contracted to 0.6%. Since the economy posted a sluggish growth rate, the central bank is unlikely to strengthen CHF at the cost of economic growth. 

"The main risk to our call is obviously that the SNB cuts the deposit rate. Policy makers might feel a need to widen the gap between ECB and SNB rates. But with the ECB not as dovish as the market expected, the chances of an SNB cut have diminished too. We attach a probability of 10% to any deposit rate cut from the SNB on Thursday", argues Nordea Bank.