The CHF to SGD exchange rate appears range-bound.
Recent movements in monetary policy by the Swiss National Bank (SNB) and the Monetary Authority of Singapore (MAS) are significant drivers. The SNB's interest rate cuts aim to counteract inflationary pressures, while MAS has kept its policy steady despite growth.
Inflation trends in Switzerland are weak, with a drop to near-zero levels, while Singapore's economy shows resilience, leading to stronger growth forecasts. These mixed factors contribute to a stable trading range over the coming months, with the rate expected to fluctuate around current levels.
Upside risks could stem from any aggressive currency intervention by the SNB to manage CHF strength. Conversely, the potential for new tariffs on Swiss goods could weaken the CHF, especially following the recent tariffs that negatively impacted exports.