Swiss National Bank

The Swiss National Bank is once again a seller of the Franc as part of its monetary policy strategy, which potentially bodes well for GBP/CHF up ahead in light of Sterling’s high yield offering, and the UK’s inflation situation.

The Swiss Franc was sold after the Swiss National Bank (SNB) became the first G10 central bank to commence an interest rate cutting cycle, with analysts saying further weakness is now likely as the central bank becomes an outlier.

The Swiss National Bank (SNB) no longer sees maintaining Swiss Franc strength as a top priority, suggesting 2023's top-performing currency can't depend on vigorous support from its central bank in 2024.

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 National Bank raised interest rates, lifted its inflation forecasts and maintained a desire for a strong Swiss Franc in what amounts to a 'hawkish' June policy announcement.

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 can count on further interest rate hikes from its central bank to underpin value.

Many European share markets were higher ahead of the North American open on Thursday including those in Switzerland, France and Germany, in a potentially favourable outcome for TS Lombard strategists who've tipped large U.S. bank stocks as a short-term buy and European government bonds as a sell.  

Switzerland's Franc had been an underperformer in midweek trade after global markets worked themselves into a frenzy when a speculative run on the shares of Credit Suisse led to a rout in the broader European banking sector entailing double-digit percentage losses for shares of some names.

An eight percent fall against a resurgent Swiss Franc is already one of the Pound's heaviest losses of the year but it could be likely to remain under pressure in the weeks ahead, according to strategists at Goldman Sachs, who've suggested that clients consider selling GBP/CHF and betting on a decline to 1.10.

The SNB has hiked interest rates by 50 basis points and confirmed it would continue supporting a strong currency.

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 has continued its ascent to top the major currency league table over multiple horizons thanks to a helping hand from the Swiss National Bank (SNB) that could be most bearish for the likes of GBP/CHF, USD/CHF, EUR/CHF and JPY/CHF in the weeks and months ahead.

The New Zealand Dollar has been sold heavily thus far in the week alongside Sterling and there is evidence that some of the resulting losses reflect asset sales by the Swiss National Bank (SNB), although none of this has done anything to disrupt the sideways trend toward consolidation in GBP/NZD. 

Pound Sterling sustained widespread losses earlier this week and there were strong indications, if not evidence that the breadth and depth of its declines resulted from an apparently successful attempt by the Swiss National Bank (SNB) to defend Switzerland’s Franc from a rampantly strong U.S. Dollar.

The Swiss Franc topped the major currency league table this week while also ascending through the rankings for 2022 following a landmark Swiss National Bank (SNB) policy change that could weigh further on the likes of GBP/CHF, USD/CHF and EUR/CHF in the weeks and months ahead.

Switzerland’s Franc has climbed from 2022 lows beneath parity against the Dollar thanks to an optimistic take from the market on the outlook for Swiss National Bank monetary policy, although one economist has warned that the SNB could yet become a headwind for the Franc again in the year ahead. 

Switzerland’s Franc has risen against the Euro and many other European counterparts thus far in 2022 but with the tectonic plates of the global interest rate landscape shifting steadily, it may find itself at growing risk of a depreciation against a range of currencies as the year goes on.

The Franc eased lower against most currencies in the wake of December’s Swiss National Bank policy assessment but its recent appreciation is a long way from over.