Citi released its latest currency analysis, projecting a moderate strengthening of the Swiss Franc (CHF) against the US Dollar (USD) while anticipating a slight weakening against the Euro (EUR).
The financial services company indicated that the Swiss National Bank's (SNB) monetary easing and the growing interest rate differential with the US and the eurozone are unlikely to significantly depress the CHF. Nonetheless, these measures could help to curb any substantial appreciation of the currency.
Citi's currency strategists foresee the CHF trading within a core range of CHF0.85 to CHF0.90 per USD over time. In contrast, the CHF is expected to experience a modest decline in value against the EUR, with projected trading levels ranging from CHF0.93 to CHF0.98 per EUR. The firm's outlook suggests that the CHF will maintain a degree of stability within these specified ranges.
Moreover, Citi analysts highlighted a potential decline in the CHF against the Japanese Yen (JPY), predicting the possibility of the CHF/JPY exchange rate falling below the support line of around ¥165/CHF later in the year. The 200-day moving average, currently at about ¥172/CHF, is anticipated to become a stronger resistance level.
The report also pointed out that the fundamental driver for the CHF/JPY pair over the long term is the disparity in trade accounts between the two nations.
However, Citi noted that short-term fluctuations in this currency pair are more directly influenced by changes in the market environment for risk assets, such as Japanese equities.
Source: Investing.com
The Swiss Franc (CHF) strengthens modestly against the US Dollar (USD) on Wednesday, with USD/CHF trimming intraday gains as the Greenback softens after softer-than-expected US Producer Price Index (P...
The US dollar traded lower against the Swiss franc for the second consecutive day on Monday (September 8). A weak payrolls report released on Friday continued to weigh on the US dollar, as investors i...
The US dollar edged higher against the slightly weaker Swiss franc, as an unexpected contraction in Swiss consumer prices in August fueled speculation that the SNB will cut interest rates to negative ...
The USD/CHF advances for the third straight day, up by 0.57% on Tuesday trading at 0.8050 as risk aversion boosted the Greenback. Economic data revealed in the United States (US) was mixed, as busines...
The USD/CHF pair trades with caution near 0.8000 during the Asian trading session on Monday. The Swiss France pair struggles to gain ground as investors turn extremely cautious ahead of an array of Un...
EUR/USD remains steady during the North American session on Friday, poised to end the week with modest gains of over 0.18% as traders brace for the next week's monetary policy decision by the Federal Reserve (Fed). At the time of writing, the pair...
U.S. Treasury Secretary Scott Bessent met with BlackRock Inc executive Rick Rieder in New York on Friday, as the Trump administration continued its search for a new chair for the Federal Reserve, a source familiar with the matter said. Bessent has...
Oil prices rose on Friday after a Ukrainian drone attack suspended loadings from the largest port in western Russia, but gains were capped by concerns about U.S. demand. Brent crude futures settled at $66.99 a barrel, up 62 cents, or 0.93%. U.S....
The International Monetary Fund on Thursday said the Federal Reserve has scope to lower interest rates because of the weakening U.S. labor market,...
The Federal Reserve is likely to start a series of interest-rate cuts next week and keep going through the end of the year, traders bet on Wednesday...
Annual inflation in the United States (US), as measured by changes in the Consumer Price Index (CPI), rose to 2.9% in August from 2.7% in July, the...
The S&P 500 notched a second straight record-high close on Wednesday, as Oracle surged and cooler-than-expected inflation data supported...