EUR/CHF edges higher as safe-haven demand fades – Société Générale
|EUR/CHF is gradually moving higher as easing geopolitical tensions trigger a partial unwind of the Swiss Franc’s (CHF) safe-haven premium, Société Générale's FX analysts Olivier Korber and Kit Juckes reports.
CHF weakens despite soft EUR/USD performance
"Safe-haven unwind and carry advantage. As geopolitical jitters ease, EUR/CHF has edged higher despite EUR/USD softness since the Christmas peak at 1.18, signaling a gradual unwind of CHF’s safe-haven bid. Pairing CHF shorts with NOK longs secures attractive carry, thanks to Norway’s elevated rates."
"Switzerland’s PMI miss confirms downside risks. Switzerland’s economy downside risks deepened with December’s manufacturing PMI plunging to 45.8 (largely below the most pessimistic forecast of 49). Coupled with 3Q GDP contraction, this reinforces economic fragility and undermines CHF’s defensive appeal."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.