In 2023, the Swiss Franc (CHF) was the best performing G10 currency. Last year’s strong performance culminated in EUR/CHF reaching a record low in December. Since then, EUR/CHF has moved lower. Economists at Rabobank analyze the pair’s outlook.
EUR/CHF forecasts revised up
EUR/CHF has surged above the 0.9600 level which takes it back close to its average level over the past year. Whether this uptrend can be sustained will depend heavily on the outcome of the SNB’s March policy meeting. That said, it is highly probable that EUR/CHF has become overextended, suggesting scope for pullbacks over the next few weeks.
We have recently revised up our EUR/CHF forecasts in recognition that the SNB has a greater incentive to cut rates earlier than other G10 central banks. However, given the recent rise in the value EUR/CHF, we see scope for pullbacks near term which we would view as buying opportunities.
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