Bloomberg: Recession in Europe boosts growth of frank

08 December 2022 229
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Source: Bloomberg

Author: Libby Cherry and Bastian Benrath

Article: Original article

Publication date: Thursday, December 8, 2022

The Swiss frank is likely to gain even more in the beginning of 2023, as investors’ concerns over an economic instability in the eurozone and debt level would boost flows into this safe haven currency, according to an opinion of Credit Suisse Group AG’s head of foreign-exchange strategy.

Luca Bindelli suggests that the Swiss frank will increase by almost 1% in the upcoming months and reach the level of 0.95. That would be its highest level since September, when the currency renewed its seven-year high.

The Swiss National Bank allowed a possibility of the frank strengthening as part of monetary tightening as a response to higher inflation. This became a major shift from years of attempts to weaken the currency to support the economy.

Forecast: the EUR/CHF pair will probably decline

This content is for informational purposes only and is not intended to be investing advice.

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