EUR/CHF set to return to above parity gradually – SocGen

The Swiss Franc has been the best-performing G10 currency year to date. Economists at Société Générale analyze EUR/CHF outlook.

EUR/USD to grind beyond 1.15 next year

As we expect EUR/USD to grind beyond 1.15 next year, EUR/CHF looks set to return above parity.

With Swiss inflation below 2% over the past quarter, the SNB should be much more comfortable with a weaker currency.

Switzerland’s growth outlook was downgraded after the summer, and the CHF has yet to adjust to this change.

See: EUR/CHF seen at 0.94 in 6-12M – Danske Bank