U.K.’s flash PMI indices indicate decline in business activity in November, composite index falls to 47.4
Swiss franc likely to gradually depreciate against euro in coming months
The Swiss franc has seen pressure against the euro after the positive news regarding the first promising COVID-19 vaccines, even though the uncertainty continues to be high, due to high infection rates in the euro area.
However, the probability of an end to the pandemic in the course of 2021 has increased. This implies a dynamic rebound of the global economy in the coming year; an environment in which safe-haven assets such as the Swiss franc usually come under selling pressure, said Erste Group Research in a report.
“We therefore expect a gradual depreciation of the Swiss franc against the euro in the coming months. However, uncertainty remains high, which leads us to expect continued high volatility. In the event of setbacks in the fight against the pandemic, as well as the intensification of geopolitical risks, the Swiss franc could abruptly strengthen against the euro at any time”, added Erste Group Research.