- Analytics
- News and Tools
- Market News
- CHF is expected to weaken against most of its G10 peers in the medium-term – Citi
CHF is expected to weaken against most of its G10 peers in the medium-term – Citi
Economists at Citigroup expect the Swiss Franc (CHF) to weaken as the Swiss National Bank (SNB) may have ended its tightening cycle.
CHF biased toward an extended period of underperformance
The SNB’s pause at its September meeting at a 1.75% terminal rate likely signals an end to its tightening cycle which leaves CHF biased towards an extended period of underperformance given the significantly lower yield on CHF compared to almost all its G10 peers (ex JPY).
However, in ending its rate hike cycle, the SNB has indicated its willingness to strengthen CHF should Swiss inflation once again rise above its 2% target. But with Switzerland having an export-to-GDP ratio of 75% and much more geared towards export performance than its peers, the SNB is likely to be more careful this time about supporting a stronger CHF especially as its growth outlook weakens significantly.
CHF is expected to weaken against most of its G10 peers in the medium-term as investors use the currency as a low-cost funding vehicle to buy risk assets and FX.
© 2000-2025. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
