The Swiss Franc (CHF) has been one of the outperformers in 2023, gaining by nearly 10% vs. the US Dollar (USD). Economists at OCBC Bank analyze USD/CHF outlook.
Forecast trajectory is largely flat for USD/CHF
In the near term, USD/CHF may correct higher as the Fed has yet to embark on rate cut but markets may be pricing a dovish shift in CHF policy.
Our forecast trajectory is largely flat for USD/CHF, taking into account 1/ a moderate and soft USD view (premised on our view that the Fed will cut rates, possibly as early as 2Q 2024) and 2/ that Swiss policymakers may no longer pursue a strong CHF policy as well as the risks for SNB rate cuts in 2H 2024. These effects should in some way offset each other.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
Hot
Load Fail()