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Swiss franc CHF forecasts for 2020

Forecasts for the Swiss franc change all the time, affected by news events and relative sentiment towards the Swiss economy. This continually updated article reviews the latest forecasts from banks and FX experts as well as news and recent movements of CHF in the currency markets.

The franc is unlikely to strengthen beyond Fr1.10 per euro, given the SNB’s eagerness to safeguard that level, a Nordea analyst said in May. For this reason, favour higher EUR/CHF rates over three- and six-month horizons, possibly as high as Fr1.16.

CHF in the markets

The Swiss National Bank continues to reaffirm its commitment to an ultra-loose monetary policy, which includes negative interest rates and a willingness to intervene in FX markets, as part of an effort to spark inflation in the economy.

The SNB will be unhappy, therefore, with the franc’s strength in May.

Between April-23 and May-24 (the day of this report), the franc was the best performing G10 currency; it gained 2.2 percent against the euro, taking EUR/CHF back towards Fr1.12 and close to long-term lows (franc highs).

May’s strength reflected worsening sentiment towards the global economy, driven by a significant escalation in US-China trade tensions. As a safe haven, the franc typically gains value during tough times and sinks when investors gain confidence.


 

CHFEUR Trend & Alerts

CHFEUR at 0.9321 is near its 90-DAY average, range 0.923-0.934.
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You can also read our full Foreign Exchange Guide to Switzerland.

What is a good CHF dollar exchange rate?

This is a difficult question and the answer really depends on many factors. The best way to consider an exchange rate's relative value is to look at the rate's history.

For example, the following table looks at the change in the CHF to USD exchange rate to the present day for periods going back 10 years:

 
CHF/USD ratePeriod
12 Oct 2020 : 1.10001 Week
19 Sep 2020 : 1.097130 Days
21 Jul 2020 : 1.072490 Days
20 Oct 2019 : 1.01531 Year
21 Oct 2015 : 1.04355 Years
22 Oct 2010 : 1.024610 Years

CHF/USD 10 year historic rates

 
Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product.