Kit Juckes, Head of Currency Strategy at Société Générale, analyzes the outlook for the Swiss franc. In his opinion, the CHF it is an interesting currency.
EUR/CHF lags behind EUR/USD: this time it’s a feature, not a bug
“The speed with which the Swiss banking system has stabilized reinforces the safe haven status of the franc. That suits the SNB now, more than usual.”
“Whereas in the past, the EUR/CHF fell when the EUR/USD did (the Swiss franc fell less than the euro against the dollar) and rose when the EUR/USD did, the EUR/CHF has decoupled from the EUR/USD, allowing the CHF to rise as fast against a falling dollar as the euro does.”
“The SNB seems to be more forgiving of a stronger Swiss franc than in the past while being less forgiving of a weaker currency in these inflationary times. Which makes the franc quite an interesting currency.”
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.
