The Swiss franc continued to appreciate to cross 0.91 per USD, moving towards a five-year high reached in the previous week, after recent data showed the Swiss consumer confidence index improved from a record low. Meantime, investors continue to worry about uncertainties caused by Covid-19 crisis and escalating tensions between Washington and Beijing. The SNB President Thomas Jordan has been reiterating the CB will continue to intervene strongly in the foreign exchange market to stop the rise of the highly valued franc in order to prevent deflation and protect the export-orientated economy. Switzerland is expected to maintain its ultra-expansive monetary policy for some time as it is facing the sharpest downturn since the aftermath of oil price shocks in the 1970s.
Historically, the Swiss Franc reached an all time high of 4.32 in January of 1971. Swiss Franc - data, forecasts, historical chart - was last updated on August of 2020.
The Swiss Franc is expected to trade at 0.92 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 0.93 in 12 months time.