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Bank of America (BofA) is revising its forecasts for the decline in the Swiss Franc. According to Bloomberg news, the Swiss franc, the worst-performing currency among G-10 rivals, will reach the same level as the euro in the third quarter of 2024. BofA reassessed its forecast after the Swiss National Bank unexpectedly cut interest rates in March.
As a reminder: the last time one franc cost one euro was just over a year ago in March 2023. Since then, the Swiss currency has shown strength. The franc rose to an all-time high against the common currency. Since the beginning of the year, the euro has regained the upper hand.
The franc has lost almost five percent of its value against the euro this year alone. The euro currently costs 0.98 francs.
Pretty soon, if BofA gets its way, it will be a franc again. And that’s not all: Bloomberg quotes a note from Ami Bank: “The SNB’s decision signals the urgency of political easing and requires a rethinking of the pace of the franc’s decline.” BofA expects the euro to rise to 1.10 francs by the end of 2025.
However: The majority of currency strategists expected the euro exchange rate to be between 0.97 and 0.98 francs this year. BofA and Commerzbank are among the most pessimistic about the franc. (euro)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
