HSBC analysts on the Swiss franc, forecasting a rise for EUR/.CHF to 0.95 by end-2025:
- Swissy's recent price action shows a disconnect with interest-rate differentials
- HSBC don't expect this to persist
- Increased political and geopolitical tensions have been a more dominant driver for the franc - it strengthens as a safe-haven
- “Our conviction is that the SNB’s policy direction will eventually hold greater sway on the currency than risk sentiment.”
