EUR/CHF climbs as interest in safe-haven assets wanes – Société Générale
EUR/CHF Rises as Swiss Franc Loses Safe-Haven Appeal
According to Société Générale currency strategists Olivier Korber and Kit Juckes, the EUR/CHF pair is steadily climbing as reduced geopolitical risks prompt investors to shed some of the Swiss Franc’s safe-haven status.
Swiss Franc Softens Even as EUR/USD Remains Subdued
With global tensions subsiding, the EUR/CHF exchange rate has inched upward, even though EUR/USD has weakened since reaching its Christmas high of 1.18. This trend reflects a gradual reversal of the Franc’s safe-haven demand. Additionally, taking short positions on CHF while going long on NOK offers an appealing carry trade, supported by Norway’s comparatively high interest rates.
Swiss Economic Data Highlights Vulnerabilities
Recent economic indicators point to growing challenges for Switzerland’s economy. The country’s manufacturing PMI for December dropped sharply to 45.8, falling well below even the most negative forecasts of 49. Combined with a contraction in third-quarter GDP, these figures underscore Switzerland’s economic weakness and diminish the Swiss Franc’s traditional defensive strength.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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