Morgan Stanley, Pictet Asset Management and other institutions are betting on the Swiss franc to pump further regardless of market Consensus

Golden Data News on December 11th, before the meeting of the Central Bank of Switzerland this week, major banks and investors including JPMorgan Chase, Citigroup, and Pictet Asset Management are bullish on the Swiss Franc, ignoring the market’s widespread expectation of a softening Swiss Franc. For these institutions, the global trade tensions in the coming months will stimulate demand for safe-haven assets, even if Swiss policymakers further cut interest rates, they will still support the Swiss Franc. JPMorgan Chase expects that by mid-2025, the Swiss Franc against the Euro will pump by about 5%, to 0.88, far higher than the analysts’ median forecast of 0.94 Euros. Daniel Tobon, Citigroup’s G10 currency forex strategist, said that the extremely dovish stance of the Swiss Central Bank has not constrained the excellent performance of the Swiss Franc, and aside from tactical trading, there is no reason to see a reversal. Luca Paolini, Chief Strategist at Pictet Asset Management, stated that in an environment where the risks of global trade wars, weak European economy, and political divisions are increasing, the Swiss Franc can be used as a hedge.