
Goldman Sachs Recommends Inflation Hedge
Goldman Sachs recommends shorting EUR/CHF, citing the Swiss franc’s safe-haven strength amid rising energy prices and eurozone inflation. Wednesday, March 11th, 2026 Goldman Sachs Flags EUR/CHF Short as Inflation Hedge Goldman Sachs has recommended a short position in the EUR/CHF currency pair, citing its use as an inflation hedge amid rising inflationary pressures driven by higher energy costs and geopolitical tensions. It comes as oil prices soar, leading to rising global inflation expectations, further weighing down inflationary-sensitive currencies such as the Euro. EUR/CHF Trade Seen as Hedge Against Energy-Driven Inflation The strategists further indicated that the Swiss currency has the potential to do better than the Euro, implying that selling the EUR/CHF pair could act as an inflation hedge for investors. Goldman Sachs has identified a short position in EUR/CHF as a hedge against high energy prices and risks of growth in the euro zone, which could drive the currency pair lower. The strategists at Goldman Sachs stated that options-based structures could be used to hedge against volatility and euro weakness. The bank stated that a hedge against inflation using USD/CHF is not effective since the US dollar’s reaction to high oil prices is complex and unpredictable, a point that is increasingly being made in market commentary. Why the Swiss Franc Is Emerging as a Key Safe-Haven Currency? The strength of the Swiss franc as a safe-haven currency is underpinned by its credible monetary policy framework, with the Swiss National Bank adopting a relatively hawkish stance and targeting inflation at less than 2%, which is more stringent compared to its peers in the G10 group of countries. Analysts at Goldman Sachs argue that a similar phenomenon was seen in 2022 during the Russia-Ukraine War when investors were seeking refuge in the Swiss franc in response to inflation and geopolitical shocks. Key Points Highlighted: · Goldman Sachs recommends shorting the EUR/CHF currency pair as a protective measure against inflationary risks. · This strategy demonstrates the safe-haven status of the Swiss franc in periods of global economic uncertainty. · Increases in energy costs have inflationary pressures for the countries in the European Union, negatively impacting the euro’s potential for future performance. · The credibility of the Swiss National Bank provides support for the resilience of the Swiss franc in periods of inflationary shocks. Goldman Sachs Sees Swiss Franc Strength as Inflation Hedge Goldman Sachs is suggesting that investors consider shorting the EUR/CHF pair as an inflation hedge. Their rationale is that the Swiss franc’s safe-haven status and its more effective inflation control may fare better against the euro as energy prices rise.













