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We maintain our bearish bias on CHF.

  • Our expectation for four Fed rate hikes in 2022 means we now see US 10yr yields at 2.20% by 2Q22. The SNB remains one of the most dovish central banks in the G10, and we think widening yield differentials should keep putting downward pressure on CHF
  • We expect the further upside momentum in German Bunds yields should also weigh on CHF. Positioning in EUR/CHF has normalised somewhat compared to the beginning of the year but remains net short