Explore eFXplus Derived Data That Drive Results
A Data Partner of:
Refinitiv
Dec 19 - 02:55 PM

HSBC: CHF Outlook for 2025 - More Bitter Than Sweet

By eFXdata  —  Dec 19 - 12:45 PM

Synopsis:

HSBC expects the Swiss franc (CHF) to face challenges in 2025 due to a tug of war between the Swiss National Bank's (SNB) policy stance and evolving global risk sentiment. While political and geopolitical uncertainties could cause temporary deviations, EUR/CHF is likely to remain anchored by SNB policy rather than risk sentiment.

Key Points:

  • SNB Policy vs. Risk Sentiment:

    • Geopolitical and political uncertainties may lead to more frequent short-term divergences between EUR/CHF and rate differentials.
    • Over the medium term, HSBC expects the SNB’s policy stance to play a dominant role in shaping the currency’s trajectory.
  • Moderate CHF Weakness Expected:

    • Despite possible risk-driven inflows into the CHF, HSBC anticipates that SNB-driven monetary easing will weigh on the currency.
    • EUR/CHF is projected to edge higher toward 0.95 by the end of 2025.

Conclusion:

While near-term volatility due to geopolitical uncertainties is likely, HSBC believes SNB policy will be the key driver of the CHF in 2025. As easing expectations solidify, the CHF’s outlook appears more challenging, with EUR/CHF expected to rise modestly toward 0.95 by year-end.

Source:
HSBC Research/Market Commentary

Subscription

  • eFXplus
  • End-user license agreement (EULA)

About

  • About
  • Contact Us

Legal

  • Terms of Service
  • Privacy Policy
  • Disclaimer
© 2025 eFXdata · All Rights Reserved
!