Inflation in Switzerland is lower than in the Eurozone. According to the Purchasing Power Parity theory, the currency of the country with lower inflation appreciates in the long term. Also, Switzerland’s debt ratios and budget balance are much better than the Eurozone.
Technically, CHF also looks stronger. While EUR/CHF is stuck in a long term downtrend, the CHF/EUR below it, as its mirror, is consolidating in the peak region in an uptrend.
So my view is in favor of CHF
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$EUR / $CHF
Inflation in Switzerland is lower than in the Eurozone. According to the Purchasing Power Parity theory, the currency of the country with lower inflation appreciates in the long term. Also, Switzerland’s debt ratios and budget balance are much better than the Eurozone.
Technically, CHF also looks stronger. While EUR/CHF is stuck in a long term downtrend, the CHF/EUR below it, as its mirror, is consolidating in the peak region in an uptrend.
So my view is in favor of CHF