CHF/AED Outlook:
Slightly positive, but likely to move sideways, as the rate is above its recent average and near the mid-range.
Key drivers:
• Rate gap: The Swiss National Bank's potential for negative interest rates contrasts with the UAE's stable monetary policy, maintaining the Dirham's strength.
• Risk/commodities: With global oil prices currently above average, this supports the UAE economy and strengthens the Dirham.
• One macro factor: Ongoing global uncertainties continue to drive safe-haven demand for the Swiss Franc, maintaining its value against the Dirham.
Range:
Expect the CHF/AED to hold near recent averages, oscillating within its established range.
What could change it:
• Upside risk: A significant positive shift in Swiss economic indicators, potentially reducing the likelihood of negative interest rates.
• Downside risk: Increased geopolitical tensions leading to weaker demand for the Swiss Franc as a safe haven.