Usdchf Will Likely Recover

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Usdchf Will Likely Recover

USD/CHF Will Likely Recover Towards 0.92 In Next 3 Months - Rabobank

According to the latest analysis from Rabobank, the Fed officials have been giving less hawkish comments as of late. This means that the USD/CHF pair will likely turn lower in the next 3-months.

For now, Rabobank's analysis puts the Dollar/Swiss Franc pair near 0.92 during the next 3 months. However, if the next Fed meeting gives hawkish signals, it will lead to broader Dollar (USD) buying against other currencies.

Interest Rates Will Stay Higher In USA

The current market opinion is that the policy of higher interest rates is here to stay for longer. However, the actual conditions suggest that the market-implied interest rate has gone down a little bit after the 1st November meeting.

But Rabobank's view is that the current interest rates will remain the same at the next meeting (December). As for the year 2024, the strength of the US Dollar will remain the relevant theme. At the same time, Chinese growth will stay weaker, while the European region will enter into recession during the 2nd half of 2024.

In addition, the USA is also at a higher risk of entering into a recession in the year 2024, which makes things difficult for the USD/CHF. On the one hand, the weakness in China will benefit the USD, while the recession risks will make it difficult for the greenback to gain strength.

On the other hand, the EU is also at risk of recession in 2024, which will make it difficult for CHF to gain any meaningful strength. At the end of the day, it will come down to which region's economic strength is superior to the others!

For now, the next 3 months' view of the USD/CHF is that it will go higher and then reach the resistance area at 0.92. But if the recession in the USA is far worse than in the EU, the USD/CHF will go lower.

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