"There are signs the CHF is coming back in from the cold and a sense of normality is returning and we expect EUR/CHF to rekindle its correlation with risk," says Viraj Patel, Foreign Exchange Strategist at ING.

Key quotes:

"A return to more normal trading conditions, arguably for the first time since 2008, makes a case for EUR/CHF to move up to more normal levels -  potentially even 1.30. Fading geopolitical risks means that the bearish CHF story could come back into the mix for markets this week."

"Unless we see a further escalation of the North Korea situation, EUR/CHF should take a pause for a breath and stabilise around current levels - although we do think it is too early for a rebound towards the previous high of 1.1538."

"Swiss PPI data (Tue) likely to have a fairly negligible impact on the franc. With EUR/USD likely to be hovering around 1.18 for now, we look for USD/CHF to remain range-bound around the 0.9600 level this week."