CHF/SGD Outlook: Slightly positive, but likely to move sideways, as the rate is above its recent average with no clear driving force.
Key drivers:
• The Swiss National Bank's (SNB) speculation on potential rate cuts contrasts with Singapore's stable monetary policy, influencing relative currency strength.
• Geopolitical tensions and the focus on safe-haven assets have supported the Swiss Franc's recent resilience despite adverse factors like tariffs on Swiss exports.
• Singapore's inflation forecasts have been revised upwards, indicating potential inflationary pressures that could support the SGD if they lead to policy adjustments.
Range: CHF/SGD is likely to drift within its 3-month range as both currencies display stability without strong directional forces.
What could change it:
• Upside risk: A shift in market conditions leading to increased demand for safe-haven currencies could bolster the CHF further.
• Downside risk: Unexpected policy changes from the SNB or negative economic news from Switzerland could weaken the CHF against the SGD.
