Swiss investment bank Julius Baer says they are upgrading their forecasts for the Swiss Franc, citing supportive economic fundamentals and a Swiss National Bank (SNB) that can afford to be more tolerant of the currencies relative strength.
The Swiss Franc continues to march higher and the Swiss National Bank might find it will have to cut interest rates in response, according to Andrew Kenningham, Chief Europe Economist at Capital Economics.
The Franc has frustrated intitutional buyers of Pound Sterling this week after the U.S. Treasury indicated it will be watching Switzerland's central bank closely for signs of currency manipulation in the months ahead, prompting a surge higher by the safe-haven unit.
The Swiss Franc's strong run against the Pound and Euro could well continue according to a number of foreign exchange analysts we follow.
The Pound starts the new year with a sharp dip against the Swiss Franc, and further losses could occur over the course of January as the GBP/CHF exchange rate threatens to enter into a fresh technical downtrend.
