CHF/SGD Outlook:
The outlook for CHF/SGD is slightly weaker, likely to move sideways. The rate is below the recent average and near recent lows, with no clear driver indicating a shift.
Key drivers:
• Rate gap: The Swiss National Bank (SNB) may consider easing its policy due to the strong CHF, while the Monetary Authority of Singapore (MAS) has eased appreciation to support the economy.
• Risk/commodities: The ongoing stability in global oil prices influences the overall economic context, keeping demand for the safe-haven CHF robust despite current pressures.
• One macro factor: Geopolitical tensions and uncertainties in global trade are boosting the CHF's demand as a safe-haven asset.
Range:
CHF/SGD is likely to hold within the current 3-month range, as it remains stable with limited volatility.
What could change it:
• Upside risk: A sudden escalation in geopolitical tensions could strengthen the CHF further.
• Downside risk: Additional tariffs on Swiss exports could pressure the CHF lower, intensifying competition in the international market.
