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In the previous year, the Swiss Franc (CHF) stood out as the top-performing G10 currency. However, its trajectory has shifted this year. Analysts at Rabobank are examining the outlook for the CHF ahead of the upcoming Swiss National Bank (SNB) meeting scheduled for Thursday.
SNB would welcome a softer CHF
A rate reduction this week would exacerbate the challenges facing the Swiss Franc (CHF) outlook, especially considering the prolonged “higher for longer” stance adopted by the Federal Reserve.
Given Switzerland’s prolonged struggle with disinflationary and deflationary pressures, along with an exchange rate deemed as overvalued, it’s anticipated that the Swiss National Bank (SNB) would welcome a weakened CHF.
