The CHF is the best performing major currency so far this year, with a 3.5% gain against the USD, the best among the majors. Scotiabank economists analyze the outlook for the Franc.
EUR/CHF downtrend could stabilize around 0.95
Although inflation has moderated to some extent and is clearly back below 2%, monetary policy makers seem to be leaning towards a “safe” additional tightening to place the SNB reference rate at 2%.
The easing of inflationary pressures could impact the general trend of the currency. Policymakers have favored a somewhat stronger exchange rate to help cushion price pressures.
The downward trend of EUR/CHF (more than 5.5% this year) could stabilize around 0.95.
We foresee a rebound of the EUR to 0.98 by the end of the year.
USD/CHF – 0.88 in the third quarter of 2023, at 0.88 in the fourth quarter of 2023, at 0.87 in the first quarter of 2024, at 0.87 in the second quarter 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.
