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Investing.com - UBS has revised its EUR/CHF exchange rate forecast upward for the second and third quarters of 2026, citing expectations of improved European economic growth and more attractive real yields in currencies other than the Swiss franc.
The Swiss banking giant lifted its forecasts for 2Q26 and 3Q26 from 0.94 to 0.95, while also releasing its December 2026 forecast of 0.95. UBS noted that the EURCHF currently remains under pressure due to safe-haven demand for the Swiss currency.
UBS expects European growth to pick up in 2026, which would provide support for the euro against the traditionally strong Swiss franc. The bank specifically pointed to better real yields in other currencies compared to the Swiss franc as a key driver that will push the EUR/CHF to 0.95 next year.
The bank recommends investors consider long positions in the currency pair around current levels. UBS also suggests selling the downside to benefit from more attractive entry levels for those looking to position for the anticipated move higher.
This forecast adjustment comes as the EUR/CHF continues to trade near historical lows, reflecting ongoing market preference for the Swiss franc as a safe-haven asset amid various global economic uncertainties.
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