Bank of America
FX Outlook 2026: Structural Dollar Headwinds
LIVE5 December 2025USD bearish
Back to CurrenciesModerately Bullish
USD/CHF
Safe haven strength persists
BofA Forecast Path
Cross-Firm Forecast Comparison
Key Drivers
SNB policy floor
Reserve diversification
Fiscal prudence
Risk sentiment
Current account surplus
All Firm Targets (Dec '26)
JPMTactically Bearish0.80
INGNeutral0.78
BARCNeutral0.78
BofAModerately Bullish0.76
GSModerately Bullish0.76
MUFGModerately Bearish0.76
MSBearish0.75
DBBullish0.75
Key Issues for 2026
1.SNB reluctant to cut further into negative territory
2.Reserve diversification flows support CHF
3.Fiscal prudence premium attractive to investors
4.EUR/CHF could test parity on risk-off events
5.Swiss current account surplus structural support
Analysis Summary
CHF benefits from safe-haven demand and structural flows. The SNB's reluctance to cut rates further supports the franc. EUR/CHF downside reflects both EUR-specific headwinds and CHF's role as an alternative reserve currency.