EUR/CHF: Swissie strength tests post-2015 lows – Societe Generale

💡 DMK Insight

The Swiss Franc’s strength against the Euro is a big deal right now, especially as EUR/CHF hits a new low since 2015. This trend suggests that traders are flocking to the Franc as a safe haven, even when risk appetite is generally high. It raises questions about the Euro’s stability, particularly as the European Central Bank navigates its own challenges. If the EUR/CHF continues to decline, it could trigger further selling pressure on the Euro, impacting related assets like European equities and commodities priced in Euros. Keep an eye on the 1.05 level for EUR/CHF; a break below could accelerate the downtrend. On the flip side, while the Franc is strong now, it’s worth considering if this trend is sustainable. If global risk sentiment shifts, the Franc could weaken as traders move back into riskier assets. Watch for any economic data releases from the Eurozone that could influence this pair, particularly inflation or growth indicators, as they could provide volatility opportunities for day traders.