Goldman Sachs: Swiss Franc Remains the Top Choice for the Time Being

Written by Emily J. Thompson, Senior Investment Analyst

Source: InvestingliveForex

Updated: 4h ago

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Source: InvestingliveForex

Goldman Sachs' View on Swiss Franc: Goldman Sachs considers the Swiss franc the best global FX hedge against central bank subordination risks, highlighting its resilience to inflation and strong fiscal fundamentals in Switzerland.
Limited Gains Expected: Despite its safe-haven status, Goldman Sachs does not anticipate significant gains for the Swiss franc, predicting that the EUR/CHF will remain rangebound, gradually drifting to 0.95 by year-end.
SNB's Influence on Currency Strength: The Swiss National Bank (SNB) is expected to maintain a hard line around the 0.9200 level for EUR/CHF to prevent excessive strengthening of the franc, as a stronger currency could complicate their inflation management.
Geopolitical Tensions and Currency Stability: Ongoing geopolitical and economic tensions are likely to sustain the Swiss franc's appeal as a safe haven, while the SNB's interventions may limit downside risks for the currency.

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.