The Swiss franc was rising together with the euro against the US dollar today. The Swissie gained on the shared 18-nation currency itself as well. It looks unlikely for the currency to maintain its rally for a long time, though, considering the policy outlook that most market analysts share.
While the franc bottomed in the beginning of October and was rising since then, there is strong pressure on the currency to resume decline. The Swiss National Bank maintains the cap on the franc and is not going to remove the ceiling until at least 2016. What is more, economists argue that the SNB may follow the European Central Bank in implementing negative interest rates. It is hard to believe that the Swissie will be able to hold ground in such conditions.
USD/CHF dropped from 0.9537 to 0.9443 as of 17:42 GMT today, reaching the low of 0.9360 intraday — the weakest rate since September 23. EUR/CHF declined from 1.2073 to 1.2064.
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