Commerzbank: The rally of the Swiss franc and the British pound may be difficult to sustain

Golden Ten Data, March 10 - Michael Pfister of Commerzbank stated in a report that the recent strong performance of the Swiss franc and the British pound may be difficult to sustain, as the adjustment in interest rate expectations appears to have been excessive. Due to the anticipated inflationary impact from rising energy prices caused by the Iran war, the market is betting that the Swiss National Bank will raise rates next year and believes the Bank of England will not cut rates further. However, he noted that for the Swiss National Bank, the strengthening of the Swiss franc itself may help lower inflation. Recent statements from the Bank of England indicate that, amid a weakening real economy, the bank still leans towards cutting rates.