Economists at HSBC analyze the Swiss Franc (CHF) outlook.

EUR/CHF is likely to track sideways

The CHF’s bad performance is in part due to its safe-haven status, as global equity markets gain. The Swiss Franc has also been hit by the Swiss National Bank’s (SNB) shift in tone around the currency, with FX strength no longer a policy tool or aspiration it seems.

We continue to look for a higher USD/CHF over the near term, while the EUR/CHF pair is likely to track sideways.