Rabobank Predicts USD/CHF Exchange Rate Range Amid Swiss Franc Attraction
Foreign exchange analysts at Rabobank predict that the US Dollar to Swiss franc (USD/CHF) exchange rate will trade mostly between 0.81 and 0.82 in the coming months, with limited further gains after its recent recovery.
The USD/CHF stood at 0.8181 on Tuesday, up 0.10% on the day and already near the upper end of that range.
Rabobank identifies a cushion below the market: 'The 50-day sma at USD/CHF 0.81 is likely to act as support.'
The Swiss Franc has become an attractive alternative to some investors due to Switzerland's zero policy rate, which makes francs inexpensive to borrow and finance investments in higher-yielding currencies.
Rabobank sees scope for the franc's role to expand if Japan signals faster rate rises at its 17-18 September policy meeting.