Bullish
UBS forecasts EUR/CHF to stay above 0.94 until end of 2026.
UBS Switzerland AG maintains its EUR/CHF forecast around 0.94 through 2026, citing short-term bullish risks before a gradual decline in 2027. The Swiss National Bank (SNB) kept its policy rate unchanged in September, avoiding an overly hawkish stance. Swiss inflation rose to 0.8% year-on-year in August, but internal inflationary pressures remain limited. UBS anticipates two SNB rate hikes in March and June 2027, bringing the first hike forward from mid-2027. The significant yield differential continues to weigh on the Swiss franc, favoring its use as a funding currency.
Key points
- UBS maintains EUR/CHF forecast at 0.94 through 2026, citing short-term bullish risks.
- SNB keeps policy rate unchanged in September, avoiding an overly hawkish stance.
- Swiss inflation rises to 0.8% year-on-year in August, with limited internal inflationary pressures.
- UBS anticipates two SNB rate hikes in March and June 2027, bringing the first hike forward.
Sources
AI-generated from public news sources. Not financial advice.
