The Swiss Franc is in the doghouse, underperforming the Euro. Economists at HSBC expect this trend to continue over the coming month.

USD/CHF to move sideways over the coming month

“We look for modest CHF weakness against the EUR in the month ahead, given the rate market is prepared for additional tightening with 40 bps already priced in for the 23 March Swiss National Bank (SNB) meeting. 

“We do not expect the CHF’s safe haven allure to be especially in demand for the next few weeks, as concerns over a possible Eurozone recession are on the retreat.”

“One upside risk to the CHF remains any shift in risk aversion owing to, for example, a potential escalation in the conflict in Ukraine.”

“We expect USD/CHF to move sideways over the coming month.”