The risk aversion sentiment, which hurt currencies of emerging markets, plays in favor of safer ones, including the Swiss franc. The Swissie, along with the Japanese yen, is one of the strongest currencies in the current risk-off environment.
Investors flee risky assets in search for safer ones and the franc is one of logical destinations for them. Of course, there is a downside in the form of the currency cap imposed by the Swiss National Bank. Yet the Swissie is still far away from the 1.20 per euro threshold, meaning that there is plenty of room for a rally.
USD/CHF was down from 0.8972 to 0.8946, touching the low of 0.8902, and EUR/CHF dropped from 1.2286 to 1.2235 as of 16:48 GMT today.
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