Last month, I made the argument that the CHF/USD has significant upside from here.
My reason for making this argument was that inflation remains a possibility over the longer-term with a continuing of quantitative easing to stimulate the economy. Given that Switzerland is an export-oriented economy, higher inflation over time is equally as unattractive as a strong franc – as this will also increase the cost of exports.
That said, my bullish view on the Swiss franc was more on a long-term basis, as inflation does remain negative and the Swiss National Bank shows no