The Swiss franc has been appreciating since November 30th to cross 0.885 per USD, the highest level since January 2015, as the dollar remained under pressure due to hopes that a rollout of coronavirus vaccines will support global economic recovery and prospects of further fiscal and monetary stimulus. At the same time, investors remain worried about rising coronavirus cases worldwide, especially in the US and Germany. On the monetary policy front, the SNB held interest rates unchanged at a record low during its December meeting and pledged to intervene more strongly in the foreign exchange market to stop the rise of the highly valued franc. Meantime, the US Treasury Department designated Switzerland as currency manipulators. Recent CPI figures showed Switzerland remained in deflationary territory for the tenth month in November and Q3 GDP data showed the economy rebounded strongly following a historical contraction while the country’s trade surplus widened to a 3-month high.
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 December of 2020.
The Swiss Franc is expected to trade at 0.89 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 0.90 in 12 months time.