EUR/CHF to trade around parity for an extended period, USD/CHF to drop below 0.90 – Barclays
|Economists at Barclays expect the Swiss Franc to remain resilient. They see the EUR/CHF pair hovering around parity for an extended period.
Recent banking sector stress unlikely to dent Franc strength or undermine its “safe haven” status
“We expect the Swiss Franc to remain resilient, supported by the SNB’s strategy to use currency strength as a lever against inflation. This strategy is implemented via further policy rate hikes and FX intervention, which should keep EUR/CHF around parity for an extended period. In a recovering EUR environment, this implies additional strength versus the Dollar (to below 0.90 in USD/CHF).”
“We do not expect the recent banking sector stress to dent Franc strength or undermine its status as one of the world’s ‘safe haven’ currencies. Such an outcome would require radical shifts in Switzerland’s balance sheet via ‘safe asset’ outflows, which we deem very unlikely.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.