UBS has revised its forecast for the currency pair, indicating a bearish outlook in the near term. The financial services provider has adjusted its March 2022 target for the euro-Swiss franc exchange rate to 0.96, down from the previous 0.97. Additionally, UBS introduced a new forecast for June 2025, setting the target at 0.96.
In recent months, the EUR/CHF The currency pair is on a rapid rise, driven by unexpectedly positive economic data from the eurozone and a trend of carry-trade transactions that resulted in the selling of Swiss francs. This increase in the value of the currency pair has been notable, but UBS expects this trend to be nearing its peak.
UBS’s outlook suggests that the spike in the EUR/CHF The exchange rate may be prompted by the expected interest rate reduction initiative by the European Central Bank (ECB). The company expects these policy changes to impact the trajectory of the currency pair in the near future.
The current position of the EUR/CHF The exchange rate is perceived as unstable by UBS, especially given the significant volume of short positions on the Swiss franc. This assessment implies a cautious stance on the currency pair as the market anticipates policy shifts from the ECB that could affect the value of both the euro and the Swiss franc.
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