UBS maintains EUR/CHF forecast at 0.94 amid Swiss franc safe-haven demand

Published 20/10/2025, 10:24
© Reuters.

Investing.com - UBS has maintained its EUR/CHF forecast at 0.94 for the period spanning the fourth quarter of 2025 through the third quarter of 2026, despite recent downward pressure on the currency pair.

The EURCHF exchange rate has experienced sustained downward pressure recently due to global political events and the ongoing rally in gold prices, which has bolstered the Swiss franc’s position as a safe-haven currency, according to UBS.

Safe-haven demand for the Swiss franc currently remains elevated, but UBS expects this to change in the medium term as U.S. political and trade uncertainties resolve, potentially making the CHF less attractive and allowing the EUR/CHF to gradually rise toward the 0.94 target.

With Swiss interest rates at zero, UBS analysts believe the euro offers better total returns than the Swiss franc, supporting their maintained forecast for the currency pair.

The bank’s outlook suggests a stabilization of the EUR/CHF exchange rate in the coming quarters, despite current market pressures that have strengthened the Swiss currency against the euro.

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