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2020/01/22 / Erste Group Research

Forex News | Several factors support the franc

USD - The signs of a recovery in the global economy are becoming stronger and stronger and this should ultimately spill over into the Eurozone. The euro should benefit from this and appreciate against the USD. However, it should not be much, as neither the ECB nor the US Fed should set clear monetary policy guidelines.

JPY - The signs of a positive turnaround in the global economy have further improved with the signing of the Phase 1 agreement between the US and China. In this environment, we believe that the yen should continue to weaken against the euro in the coming months.

CHF - Political turmoil within the Eurozone and a widening of the inflation differential in favor of the franc supported, among other things, the strengthening of the franc. In addition, the US recently placed Switzerland on the currency manipulator watch list, which supported the strength of the franc even more. However, since based on our assessment the franc is overvalued at its current level, we continue to expect a gradual weakening of the franc against the euro.

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General information

AuthorErste Group Research
Product nameForex News
Topic in focusFX, Macro/ Fixed income
Economy in focusJapan, Switzerland, United States
Currency in focusSwiss Franc, US Dollar
Sector in focus-


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