CHF in the markets
The Swiss National Bank continues to reaffirm its commitment to an ultra-loose monetary policy, which includes negative interest rates and a willingness to intervene in FX markets, as part of an effort to spark inflation in the economy.
The SNB will be unhappy, therefore, with the franc’s strength in May.
Between April-23 and May-24 (the day of this report), the franc was the best performing G10 currency; it gained 2.2 percent against the euro, taking EUR/CHF back towards Fr1.12 and close to long-term lows (franc highs).
May’s strength reflected worsening sentiment towards the global economy, driven by a significant escalation in US-China trade tensions. As a safe haven, the franc typically gains value during tough times and sinks when investors gain confidence.
The franc is unlikely to strengthen beyond Fr1.10 per euro, given the SNB’s eagerness to safeguard that level, a Nordea analyst said in May. For this reason, favour higher EUR/CHF rates over three- and six-month horizons, possibly as high as Fr1.16.
Swiss franc – Historical Rates
|1 Day||-0.04%||0.9827||18 Jul 2019|
|1 Week||-0.15%||0.9838||12 Jul 2019|
|1 Month||-1.08%||0.9930||19 Jun 2019|
|6 Months||-1.33%||0.9955||20 Jan 2019|
|1 Year||-1.65%||0.9988||19 Jul 2018|
|5 Years||+9.72%||0.8953||20 Jul 2014|
|10 Years||-8.02%||1.0679||21 Jul 2009|
*For period to 19-Jul 21UTC when USD/CHF was 0.9823
You can also read our full Foreign Exchange Guide to Switzerland.
The British pound was the worst-performing major currency in the April-June period and remains “impossible to forecast” amid a Tory leadership battle that might force “no deal” or a general election.
Last update: 30 Jun, 2019
Lifted by oil, economic data and the Fed, the Canadian dollar has soared against the US dollar to a 16-week high and has reached even more impressive milestones against the pound, euro and Australian dollar.
Last update: 20 Jun, 2019
New research from the European Central Bank shows that banks charge smaller customers up to 25 times more for FX forward transactions and that those who fail to compare providers pay 14 times more for FX than those that do.
Last update: 17 Jun, 2019
The Australian dollar is at or near multi-month lows against a number of major currencies in spite of a rampant iron ore market — once a great influence on AUD.
Last update: 15 Jun, 2019