The Swiss franc (CHF) has been the weakest currency in the G10 so far this year. Standard Chartered economists analyze the outlook for CHF.
A very aggressive SNB would be needed for the CHF to strengthen further
The CHF has been the worst performing G10 currency so far this year and we expect this to continue.
It would take a very tough SNB to strengthen the CHF further and we don't see much reason for them to go in that direction even if they remain unchanged in March and don't commit to a cut in June.
By most indicators, the CHF real effective exchange rate is well above historical averages, and we doubt that the SNB will oppose a modest depreciation.
Barring geopolitical shocks, we expect it to be a funding currency for both the G10 and emerging markets.
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.
