Swiss Franc may underperform moderately this year – Scotiabank

FXStreet Insights Team FXStreet

The Swiss Franc (CHF) has been correcting lower at the start of the year. Economists at Scotiabank analyze CHF outlook.

CHF may underperform as inflation cools

The CHF may underperform moderately this year.

We expect some gains in EUR/CHF over the course of 2024, reflecting some easing in the Swiss National Bank’s already low 1.75% policy rate and a modest correction in the CHF’s somewhat overvalued status.

The central bank has also decided to stop leveraging a firm exchange rate as a tool to help battle domestic prices now that inflation is slowly converging with the central bank’s 2% target.

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FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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