Saturday, June 3, 2023
HomeBusinessCHF: CHF has room to strengthen further in the near term –...

CHF: CHF has room to strengthen further in the near term – MUFG

Analysts at MUFG pointed out that fears of a hard landing and a hawkish Swiss National Bank (SNB) favor further Swiss franc performance. They argue that the SNB should continue to benefit from the SNB’s desire to contain upside inflation risks by accelerating rate hikes and tolerating a stronger currency.

Key Quotes:

“The Swiss Franc is the best performing G10 currency so far this month, as it has Currencies are both sharply stronger EUR (+2.2%) and USD (+1.5%). After consolidating at higher levels for some time in July-August, it has regained momentum against our equally weighted basket of other G10 currencies. Switzerland The franc’s renewed gains coincided with a sudden hawkish SNB repricing, similar to expectations for a rate hike in June.”

“Market participants are increasingly confident that the SNB will continue to play catch-up. With The major central banks cooperated and raised interest rates by 100 basis points in the coming week (Thursday) to counter upside risks to inflation. 86 basis points of rate hikes have now been priced in. The Swiss National Bank has also strengthened against the currency since its last policy meeting in June become more forgiving as it provides another channel to help contain upside inflation risks.”

“CHF appears well-positioned to extend near-term gains, especially against other high betas G10 currency.”

The information on these pages contains Forward-looking statements that involve risks and uncertainties. The markets and instruments described on this page are for informational purposes only and should not be taken as a recommendation to buy or sell these assets in any way. You should conduct your own thorough research before making any investment decision. FXStreet does not warrant in any way that this information is free of errors, errors or material misstatements. It also does not guarantee that the information is timely. Investing in public markets involves a number of risks, including loss of all or part of your investment, and emotional distress. All risks, losses and costs associated with investing, including the entire loss of principal, are borne by you. The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of FXStreet or its advertisers. The author is not responsible for the information at the end of links published on this page.

Unless otherwise expressly mentioned in the text of the article, at the time of writing, the author has no positions in any stocks mentioned in this article, and no business relationship with any companies mentioned. Other than from FXStreet, the author did not receive any compensation for writing this article.

FXStreet and the authors do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness or suitability of this information. FXStreet and the author shall not be liable for any errors, omissions or any loss, injury or damage arising out of this information and its display or use. Errors and omissions excluded.

The author and FXStreet are not registered investment advisors and nothing in this article is investment advice.



Please enter your comment!
Please enter your name here


Featured NEWS