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Swiss Franc CHF

 

Detailed information and fundamental factors

Central Bank: Swiss National Bank

Interest Rate: -0.75%

Public Debt to GDP Ratio, 2020: 48.7%

Trade Balance, 2019: $83.6 bln.

Inflation, 2019: 0.4%

Sovereign Credit Ratings:

Fitch
AAA
Stable
Moody's
Aaa
Stable
S&P
AAA
Negative

Supporting Factors

Anti-inflation hedge reputation

Safe-haven currency

medium

Factors of Weakness

The Swiss National Bank manipulates currency rate

weak

Negative interest rates

medium

The Swiss franc is the currency that is officially used in Switzerland and Liechtenstein, while also used in some other regions. The franc was introduced in 1850 as a currency used in the whole Switzerland, replacing different currencies that were used in different parts of the country (some of them were also called “franc”). The franc is considered a safe currency because of the stability of the Swiss economy and the near-zero inflation of the currency. Previously, the law that demanded that 40 percent of printed money should be supported by gold also supported the view on the franc as a safe currency, but that requirement was terminated in 2000.



Swiss Franc News Archive

Strength of Swiss Franc Signals About Worsening Sentiment

Markets started Thursday’s trading session in a positive mood. The Swiss franc, being considered a safer currency, was soft as a result of that. But currently, the Swissie has managed to gain against almost all of its most-traded peers. It also erased losses versus the Australian dollar, which had been the strongest currency on the Forex market during the early Thursday trading.

Swiss Franc Weak Due to Risk Appetite, Domestic Data

The Swiss franc fell today as continuously rising yields and risk appetite made investors less interested in currencies considered to be safe. The Swissie lost even to the Japanese yen — another currency considered to be a safe haven. Switzerland’s macroeconomic data was poor, adding to pressure on the Swiss currency.

Swiss Franc Among Weakest as Investors Don’t Shun Risk

The Swiss franc was among the weakest among major currencies on the Forex market today, along with the US dollar and the Japanese yen — other currencies considered to be safe. That suggests that risk appetite has been driving markets on Friday.

Swiss Franc Sinks Despite Positive Macros

The Swiss franc sank today, declining against all of its most-traded rivals. The reason for such a poor performance was unclear, considering that domestic macroeconomic indicators released on Monday were extremely good, beating expectations by a wide margin. Some market analysts theorized that the slump of the Swiss currency was a result of outflows into the US dollar, which was very strong on Monday.

Swiss Franc Weakens vs. Commodity Currencies on Market Sentiment

The market sentiment was still favoring riskier currencies over safer ones, and that reflected in the performance of the Swiss franc. The Swissie declined against commodity currencies while holding steady versus other rivals. The worse-than-expected domestic inflation data did not seem to have a material impact on the franc.

USD/CHF Flat As Treasury Labels Switzerland, Vietnam Currency Manipulators

The Swiss franc is trading relatively flat against the US dollar in the middle of the trading week after the US government announced in a new report labeled Switzerland and Vietnam as currency manipulators. The move had been expected for quite some time as the central bank continually intervened in foreign exchange markets to limit the franc’s appreciation. Will this have dire consequences for bilateral relations?

Swiss Franc Strong, Defying Fundamentals

The Swiss franc was the strongest currency on the Forex market today, rising against all other most-traded rivals. That was a very puzzling performance, considering that news neither from Switzerland nor from abroad was positive for the currency.

Swiss Franc Gains After Positive GDP & Manufacturing PMI Reports

The Swiss franc logged gains versus a basket of currencies today, getting help from positive domestic macroeconomic reports. Economists do not expect tomorrow’s data to be good, though.

Swiss Franc Soft Despite Better-than-Expected Data

The Swiss franc was soft for the most part today, though it managed to log small gains versus the Australian dollar and the Japanese yen. Better-than-expected domestic macroeconomic data was unable to bolster the Swissie.

Swiss Franc Soft as Markets Relish Biden Victory, Coronavirus Vaccine News

Risk appetite reined over markets at the start of the week, driving investors towards riskier currencies and away from safer ones. Surprisingly, the US dollar did not fare that poorly, but the Swiss franc was clearly a victim of the risk-on market sentiment. The only major currency that performed even worse than the Swissie was the Japanese yen.

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