Swiss Private Bank J Safra Sarasin's latest research suggests that as Switzerland's yield disadvantage relative to the rest of the world gradually diminishes and investors seek safe haven assets, it is expected that the Swiss franc will appreciate against the pound, euro, and dollar by the end of the year and continue to do so until 2025.

J. Dr. Karsten Junius, Chief Economist of Safra Sarasin, said, "The Swiss National Bank may relax policy faster than previously expected. We expect interest rate cuts in September, December, and March because inflation is clearly falling too fast

However, as other central banks lower interest rates, the Swiss National Bank will also further cut rates, and the uncertain emotional background is expected to support demand for the ultimate safe haven currency.

Despite the possibility of a short-term decline in the Swiss franc, we expect the highly uncertain global macro outlook to support the Swiss franc, "said Claudio Wewel, a foreign exchange strategist at the bank." The pullback in global bond yields should also help the currency, while also hedging against geopolitical uncertainty

He added, "The Swiss franc should continue to perform well

J. Safra Sarasin Chief Economist Karsten Junius said, "The Swiss National Bank is quite satisfied with the current valuation of its currency. Without intervention from the Swiss National Bank, we believe there is still room for further appreciation of the Swiss franc in the coming year

However, he acknowledged that once the Swiss central bank approaches the zero limit interest rate, there may be intervention issues next year.

J. Safra Sarasin predicts that the GBP/CHF exchange rate will be 1.13 by the end of 2024, 1.11 by the end of the first quarter of 2025, 1.09 by the end of the second quarter of 2025, and 1.06 by the end of 2025; The euro to franc exchange rates are 0.94, 0.94, 0.93, and 0.92, respectively; The US dollar to French franc exchange rates are 0.87, 0.86, 0.85, and 0.82, respectively.

Daily chart of USD/CHF exchange rate