How about a fundamental, long term view:
Interest rate futures have priced in a fed 75 bsp cut on March 18. If they follow through, the CHF will yield a higher return (2.75% )than the USD (2.25%)!
In addition, the CHF will probably continue to strengthen, due to its reputation as a safe haven currency. Especially if the US enters a serious economic downturn, and/or the effects of this downturn is felt throughout the world.
A safe haven currency with higher yields, who could want more!
In my opinion, the question is not if we will break parity, but when.
scex
Interest rate futures have priced in a fed 75 bsp cut on March 18. If they follow through, the CHF will yield a higher return (2.75% )than the USD (2.25%)!
In addition, the CHF will probably continue to strengthen, due to its reputation as a safe haven currency. Especially if the US enters a serious economic downturn, and/or the effects of this downturn is felt throughout the world.
A safe haven currency with higher yields, who could want more!
In my opinion, the question is not if we will break parity, but when.
scex