Bank of America: Safe-haven funds reduction and rate cuts may weigh on the Swiss franc

On November 11, Bank of America said in a report that the Swiss franc could fall due to reduced safe-haven demand and further interest rate cuts by Switzerland's Central Bank. Kamal Sharma, a strategist at Bank of America Forex, said that as the risk of the major event of the US presidential election disappears, the safe-haven flow to the Swiss franc may decrease. He said that given that there are no problems with the inflation process in Switzerland, the Swiss Central Bank is likely to cut interest rates at every meeting until the policy Intrerest Rate reaches 0.5%. However, growing political concerns in Germany mean that EUR/CHF "may succumb to the kind of pressures that emerged in June". He said the case for dumping the Swiss franc against other currencies such as the US dollar and the British pound was more compelling.