Swiss Franc

Modest declines for Switzerland's Franc and a buoyant Pound have raised Sterling into the top spot among advanced economy currencies for the year in what potentially marks an inflection point for both currencies ahead of important macroeconomic events for both in the opening week of the new month. 

The Swiss Franc outperformed in the penultimate session of the week amid reports of hawkish comments from Swiss National Bank (SNB) Chairman Thomas Jordan but its latest gains are stoking an already high valuation and a potential vulnerability due to a moderation of inflation now underway in Switzerland.

The Swiss Franc remained one of the top-performing major currencies of the period in the fading light of March and will still retain its appeal as a financial safe haven even as it struggles to advance against the Pound, Euro and others over the remainder of the year, according to Barclays Research.

The Swiss Franc has turned the major currency league table on its head to become the second best performer of 2022 but it could rise further against Sterling and may even have scope to push GBP/CHF back to 1.0555 in the months ahead, according to analysts at Nomura.

The Swiss Franc was a notable underperformer within the complex of perceived safe-havens during the final session of the week while the recently troubled Japanese Yen was the outperformer even as U.S. government bond yields lifted the Dollar against most other major currencies.

The Swiss Franc was little changed against the Dollar and Pound on Thursday following the March monetary policy decision of the Swiss National Bank (SNB), which has left the outlook for USD/CHF hinged on the recovery prospects of the all-important EUR/USD and EUR/CHF exchange rates.

The Swiss Franc appeared to be the world's top performing currency Thursday as the Euro faltered against the Dollar while the U.S. unit ceded ground to safe-haven counterparts, raising the risk of intervention from the Swiss National Bank and one that could grow if a EUR/USD correction takes hold.

The Swiss Franc's relentless rally against the Dollar will come to an end at the same time as the Euro-Dollar rate turns lower although when USD/CHF does reverse higher it could possibly be at the instigation of the Swiss National Bank (SNB). 

The Swiss Franc (Swissie) is unlikely to show much volatility in coming months due to interventions from the Swiss National Bank (SNB) designed to keep the Franc devalued.

Recent export figures showed a sharp fall in one of Switzerland’s key exports: timepieces, leading to expectations the Swiss National Bank (SNB) could intervene in the currency markets once again.

Markets are pricing the GBP to CHF exchange rate to trade towards 1.35 by March 2017, but UBS warn those exposed to the pair should be prepared for unprecedented volatility.