Bank of America (BAC.US) has revised its forecasts for the Swiss franc

Bank of America (BAC.US) has revised its forecasts for the Swiss franc, now predicting a faster pace of depreciation against major currencies due to weaker-than-expected inflation data for January and the increased likelihood of an earlier interest rate cut by the Swiss National Bank.

• The revised forecast anticipates the EUR/CHF pair reaching parity faster, now expected in the second quarter of 2025, instead of the fourth quarter. Additionally, the Bank expects the USD/CHF exchange rate to reach 0.85 by the second quarter.
• It is important to emphasize that Bank of America's position in this post is solely for presentation/information purposes and should not be viewed as recommendations or target prices.

The money market is currently pricing in nearly a 95% probability that the SNB will decide on its first rate cut during the Bank's June decision. Source: Bloomberg Financial LP

It's worth noting that for a month, the crosses with the Swiss franc have already shown signs of a clear depreciation of the CHF. Source: xStation.