The Swiss franc remains one of the most resilient safe haven assets, but the market continues to underestimate its potential. Morgan Stanley analysts reached this conclusion, noting that the Swiss currency could demonstrate a faster and more significant strengthening than currently forecast. By midday, the USD/CHF pair was down 0.1% to 0.7756, while EUR/CHF was up 0.1%, reaching 0.9147.

According to the bank, many traditional safe havens exhibit inconsistent performance during periods of severe market turmoil. In a comparative analysis that included government bonds, the Japanese yen, the US dollar, and gold, the franc demonstrated the most stable performance across various crisis scenarios.

Analysts consider the Swiss franc to be the most versatile hedge — an asset capable of maintaining value across a wide range of risks. Key factors cited for its attractiveness include resilience to inflation threats, currency depreciation risks, fiscal stability, and investor capital protection.

The review pays special attention to the Swiss National Bank's position. Morgan Stanley believes the regulator could be more tolerant of currency appreciation if it doesn't threaten inflation targets.

The bank forecasts a decline in the EUR/CHF pair to 0.87 (approximately 5% below current levels), while market consensus still predicts a weakening of the franc. In a bearish scenario for the US dollar, analysts do not rule out a decline in the USD/CHF pair as low as 0.64, emphasizing that investors have not yet fully appreciated the franc's potential as a hedging instrument comparable to gold.