The Swiss franc is the traditional safe-haven currency. If there are every any doubts about the cohesion or economic prospects of the Eurozone, then the franc tends to strengthen.
Credit Suisse predicts the CHF/EUR rate to rise above 1.00 at some point this year, as it is the franc is already at its highest level vs the euro since mid 2015.
As the CHF gets stronger, food and energy prices in Switzerland should go down compared to other countries.
20 Jun 2022
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The Swiss National Bank surprised markets with a 50 basis point rate hike in June pushing up CHF/USD.
A stronger CHF would help with fighting imported inflation which is a major global concern given surging commodity prices.
Credit Suisse analysts are sure that the National Bank will remain committed to price stability and will protect their currency to fight imported inflation.
Switzerland has the lowest official cash rate in the world and the lowest bond yields, which makes the Franc sensitive to increases in interest rates in other countries.
You can also read our full Foreign Exchange Guide to Switzerland.
Disclaimer: Please note any provider recommendations, currency forecasts or any opinions of our authors should not be taken as a reference to buy or sell any financial product.