BofA favors Swiss franc over euro for bearish dollar view amid yield shifts

BofA favors Swiss franc over euro for bearish dollar view amid yield shifts

Source: EODHD - https://www.investing.com/news/forex-news/bofa-favors-swiss-franc-over-euro-for-bearish-dollar-view-amid-yield-shifts-93CH-4169452
Published: Aug 05, 2025 4:59 AM

Investing.com - Bank of America strategists are recommending investors express bearish dollar views against the Swiss franc rather than the euro this week, according to a new research note released Monday. The bank’s Currency and Rates Strategy (CARS) model entered what it terms a "macro shock regime" last week, triggered by falling U.S. Treasury yields. This shift in market conditions would typically favor the Swiss franc over the euro when trading against the dollar. BofA analysts noted that while the U.S. dollar’s price movements versus both the euro and Swiss franc have been highly correlated throughout 2023, recent developments suggest a potential divergence. The Swiss franc has weakene...

Market context: This update is relevant to USD traders, with USDCHF as the primary instrument to monitor for follow-through, trend continuation, or headline volatility.