Recent Losses Attract Traders to Franc, Will SNB Intervene?

The Swiss franc advanced today against all other most-traded currencies as the recent weakness of the currency attracted Forex traders.

There are various reasons for the rally of the Swiss currency. The recent losses of the franc attracted bulls to the franc, while the prevailing risk appetite made bears to cover positions. The advance of the euro was benefiting for the franc since the Swiss currency is tied by the shared European currency by the Swiss Central Bank.

Most economists don’t believe the franc will be able to maintain its strength for a long time. The peg of the currency to the euro continues to put downward pressure on the franc. It’s a common view the SNB is going to push the ceiling further to â‚¬1.30 per franc and the current appreciation of the Swiss currency makes it even more probable.

USD/CHF slumped from 0.9271 to 0.9027 as of 18:22 GMT today. EUR/CHF fell from 1.2414 to 1.2338, while CHF/JPY advanced from 82.77 to 84.87.

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