Euro To Swiss Franc Forecast

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Euro To Swiss Franc Forecast

Euro To Swiss Franc Forecast For 2027 And 2028

A survey of major investment banks shows that the EUR/CHF pair is likely to become stable in 2027 and 2028. This is a big shift considering that the pair was mainly running on CHF's outperformance.

Most of the banks think the EUR/CHF pair will trade in the 0.92 to 0.95 range in 2027. Only a few banks have forecasted a return towards the 0.90 range.

Euro Recovery Is Highly Likely

These targets suggest that banks are now more confident about Euro recovery in the medium to long term. If we look at the past, the Swiss Franc has managed to stay strong, but that's about to change now.

The banks that suggest Euro strength are UBS, Citi, Bank of America, SEB, and Credit Agricole. All of them think the EUR/CHF will trade in the 0.93-0.95 range. This range will stay effective over the next 12 to 24 months.

Rabobank and RBC Capital Markets are also bullish on the EUR/CHF pair. So, the overall sentiment favors the EUR against the CHF.

Meanwhile, HSBC, Danske Bank, Westpac, and Goldman Sachs have a more cautious approach. They believe EUR/CHF will trade in a tighter range. The expected range for the EUR/CHF pair is 0.90-0.91, according to these banks.

However, even these banks think a move below 0.90 is highly unlikely. So, the odds of a strong CHF are very low in 2027 and 2028. These forecasts also represent a major change as compared to the last few years.

EUR/CHF was near parity back in 2021. But it didn't last long, and the pair moved lower due to prolonged weakness of the Euro, mainly due to the energy crisis in the Eurozone. Other factors that contributed to Euro weakness were inflation shocks and a strong demand for the CHF.

But now, the pair is likely to move higher in the next few years. What's interesting is that only a few banks are citing a move below the 0.90 handle. This clearly highlights that the odds will stay in the Euro's favor.

Even the price action tells us that bearish momentum in EUR/CHF has eased. So, the path of least resistance for the EUR/CHF is now upwards.

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