Risk Appetite Saps Strength of Swiss Franc

The Swiss franc was little changed after it dropped yesterday as the rally of stocks caused investors to turn their attention from the safe currencies to the higher-yielding ones.

The Stoxx Europe 600 Index rose as much as 1.3 percent, while the Swiss equities gained. The franc advanced 8.1 percent in the previous year versus the basket of 10 major currencies amid demand for safety. It looks like now investors began favor risk.

Jeremy Stretch from the Canadian Imperial Bank of Commerce said that “safe-haven currencies such as the Swiss are proving to be not very much in demand”. “The Swiss franc is tremendously overvalued” in opinion of Hans-Guenter Redeker from BNP Paribas.

USD/CHF traded at 0.9483 as of 02:44 GMT after it jumped from 0.9333 to 0.9485 yesterday. EUR/CHF traded at about 1.2597, following the advance from 1.2470 to 1.2622.

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