EUR/CHF and USD/CHF price forecast for 2026, as per UBS

Investing.com - UBS projects the EUR/CHF exchange rate will edge higher to 0.94 into 2026 while USD/CHF should stabilize around 0.78.

The Swiss bank cited the European Central Bank’s recent decision to hold interest rates steady for the foreseeable future as a key factor supporting its outlook.

UBS noted this policy stance was "music to the Swiss National Bank’s ears," particularly after the SNB emphasized the importance of interest rate differentials at its recent press conference.

The ECB slightly raised its growth projections for the Eurozone, which UBS believes will reinforce expectations for a persistently wide rate gap between the two economies. This differential typically influences currency movements between the Swiss franc and euro.

UBS also identified ongoing discussions about a Ukraine-Russia peace deal as a potential downside risk for the Swiss franc, which traditionally strengthens during periods of global uncertainty.

The bank expects regional macroeconomic factors to regain prominence in 2026 after a year dominated by global financial conditions, as worldwide uncertainty gradually diminishes.

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