Swiss businesses continue to hold a cautious view of the Euro, as a recent UBS study indicates that the Swiss Franc is likely to strengthen modestly against the single currency in 2026.

This outlook is consistent with a long-term trend, as the Euro-Franc exchange rate has been gradually declining over several years.

On Monday night, the Euro/Franc pair reached a record low of 0.9124, reflecting ongoing pressure on the Euro. Following this drop, a minor rebound occurred, bringing the exchange rate to just above that level, suggesting some temporary stabilisation amid continued market volatility, Swiss Info reports.

Meanwhile, the US Dollar dropped to a multi-year low of 0.7605 against the Swiss Franc at the end of January, before recovering slightly to trade around CHF 0.7666.

A UBS foreign exchange survey of approximately 300 Swiss companies conducted in late autumn 2025 suggests that the Franc is expected to remain in strong demand.

Respondents anticipate the Euro to weaken further, targeting an exchange rate of around CHF 0.91 by the end of 2026, while the Dollar is projected to reach approximately CHF 0.78.

However, UBS itself takes a somewhat more optimistic view. Its economists project a slightly stronger Euro, expecting it to trade around CHF 0.95.

The bank bases this forecast on anticipated acceleration in the German economy in 2026, which could provide a supportive tailwind for the Euro.

However, UBS cautions that if the expected recovery fails to materialise and current economic or geopolitical risks intensify, the Swiss Franc could continue to gain strength throughout 2026.

In such a scenario, the bank’s experts see the Euro potentially falling to around CHF 0.90.