EUR/CHF Decline Remains Constrained for Now

Written by Emily J. Thompson, Senior Investment Analyst

Source: InvestingliveForex

Updated: 2d ago

0mins

Source: InvestingliveForex

Swiss Franc Performance: The Swiss franc is currently a strong performer among major currencies, acting as a safe haven amid geopolitical risks and issues affecting the US dollar and Japanese yen.
EUR/CHF Trends: The EUR/CHF pair has seen a decline, opening with a gap down this week, and is closely monitoring the 0.9200 level, with traders diversifying into precious metals due to concerns over fiat currency debasement.
SNB's Position: The Swiss National Bank (SNB) is likely to maintain a hard line around the 0.9200 level to prevent excessive strengthening of the franc, as they aim to manage inflation without resorting to negative interest rates.
Future Outlook: Goldman Sachs predicts that EUR/CHF will remain rangebound in the coming months, gradually drifting higher to 0.95 by year-end, as geopolitical tensions ease and the SNB keeps downside pressures in check.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.