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US Dollar - Swiss Franc Exchange Rate Forecast
Monday, 03 November 2008 22:51:15 GMT  |  Jamie Saettele, Senior Strategist and David Rodriguez, Quantitative Analyst
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US Dollar - Swiss Franc Long-Term Technical Forecast

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The USDCHF is in the exact same position as the EURUSD (but as the inverse). The USDCHF is lagging the EURUSD a bit though as the pair just broke above its long term trendline (resistance in this case). The long term target is now above 1.8309. The Daily Technicals will focus on short term pattern development.

US Dollar - Swiss Franc Fundamental Outlook, Interest Rate Forecast

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Interest rate forecasts have had little effect on the US Dollar-Swiss Franc pair, as expectations for the USD/CHF rate have shifted wildly while the pair itself has climbed considerably through recent months. That said, current interest rate expectations do favor US dollar strength through the medium term. The Swiss Franc's yield advantage over the USD is forecast to shrink by 63 basis points in the coming 12 months, which could potentially produce upward pressure on the USD/CHF exchange rate. 

What remains to be seen is whether the Swiss Franc will actually move on shifts in interest rate differentials. As with the Japanese Yen, the CHF has shown itself to be more sensitive to movements in global equity markets than its own market yields.

Forex Sentiment and Positioning Forecast for US Dollar - Swiss Franc

Swiss Franc Forex Futures Positioning Suggests USD/CHF Top May Be Close

 

Written by Jamie Saettele, Senior Strategist and David Rodríguez, Quantitative Analyst for DailyFX.com

We always want to hear your feedback on new DailyFX articles. Want more articles like this? Less? What do you want to see? E-mail the authors of this report at jsaettele@dailyfx.com and drodriguez@dailyfx.com.

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