The Swiss Franco has increased in the midst of turbulence in global variable income markets and the decrease in confidence in the dollar. With the SNB probably cutting rates in June in June and interventions in the currency market restricted by the US commercial threats, the Franco could remain firm, although the risks of the second quarter persist if the risk assets continue to fall, the FX analysts of ING, Francesco Pesole and Chris Turner point out.
The CHF shines while the markets seek non -dollarized refuge
“The strong mass sale in global Variable Income Markets and the search for a non -dollarized secure refuge have made the Swiss Franco perform very well. The Swiss National Bank faces the double challenge of a) Culing the 0% policy rate in a reluctant manner when it meets in June yb) face restrictions on intervention in the currency market.”
“One of the reasons why the CHF could be working so well is the history of the intervention. Washington’s key to its commercial partners is that they stop preventing their currencies from being appreciated. Switzerland briefly faced a ‘reciprocal’ tariff of 31% and could face it again if he carries out a persistent intervention in the currency market.”
“We see downward risks in the second quarter if risk assets remain vulnerable.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
