He Swiss franc ends 2023 as the G10 currency with the best performance. The economists of ANZ Bank analyze the prospects for the CHF.
USD/CHF at 0.86 at the end of 2024
We believe the SNB will be less concerned about supporting CHF strength in 2024.
Weaker EU growth is associated with a stronger CHF Trade Weighted Index over a longer time horizon. Thus, if the EU remains trapped in a period of slow to negative growth, what some consider to be an overvaluation of the CHF is likely to persist for longer than expected.
The bottom line is that although the tailwinds will diminish as we move into 2024, CHF could remain overvalued in the short termgiven that Europe's economic problems will probably last until the first half of next year. However, the weakening of the USD and the easing of global rate cycles should push the CHF back from its multi-year highs against other G10 crosses..
We see the USD/CHF at 0.86 at the end of 2024.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
