CHF gathers strength after US adds Switzerland to currency manipulator watchlist

Eren Sengezer FXStreet

The United States' decision to add Switzerland to the currency manipulator watchlist on Tuesday provided a boost to the Swiss franc as investors saw this development as a factor that would make it difficult for the Swiss National Bank to intervene in the FX markets. Switzerland's State Secretariat for International Finance responded to the US decision in a statement reiterating that Switzerland is not manipulating its currency.

With the initial reaction, the EUR/CHF pair slumped to its lowest level since April 2017 and was last seen trading at 1.0766, down 0.38% on the day. Similarly, the USD/CHF pair was erasing 0.35% on the day at 0.9672.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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