The Swiss Franc has been the best-performing G10 currency year to date. Economists at Société Générale analyze EUR/CHF outlook.
EUR/USD to grind beyond 1.15 next year
As we expect EUR/USD to grind beyond 1.15 next year, EUR/CHF looks set to return above parity.
With Swiss inflation below 2% over the past quarter, the SNB should be much more comfortable with a weaker currency.
Switzerland’s growth outlook was downgraded after the summer, and the CHF has yet to adjust to this change.
See: EUR/CHF seen at 0.94 in 6-12M – Danske Bank
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