The overnight fall in the value of the JPY briefly left the CHF as the best performing G10 currency over the past five sessions this morning. In our view, this is not an accolade that the SNB will have welcomed, Rabobank’s senior FX strategist Jane Foley notes.
EUR/CHF to return to the 0.95 area
“We expect that the more settled market conditions of the past 36 hours or so will allow the CHF to continue to soften as some safe haven flows reverse. These factors suggests that the CHF is likely to continue finding good support from haven flows in the coming months. For much of the first half of this year, the CHF was in a weakening trend vs. the EUR.”
“The softer CHF will have been good news for Swiss exporters. Since very late May, the value of EUR/CHF has more or less reversed all of the move higher in the first 5 months of the year. EUR/CHF trended higher in late June, buy arguably the overall impact of the SNB’s June rate cut was limited by the ECB’s policy announcement in the same month.”
“As markets settle down after the market turmoil earlier this week, we expect EUR/CHF to return to the 0.95 area. However, despite the likelihood of another SNB rate cut in September, we expect that safe haven demand will prevent EUR/CHF from trending higher medium-term. We have adjusted our EUR/CHF forecasts and expect a trading band to centre around the 0.95 to 0.96 area in the coming 12 months.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD flirts with this year highs as USD resumes slide
The Australian Dollar surged against its American rival approaching the yearly high of 0.6437. The cautious tone of equities was not enough to help the Greenback, weighed by trade tensions between the US and China.
Gold extends gains towards $3,350 Premium
Gold price slowly advanced on Monday, starting the new day just ahead of the $3,350 amid broad US Dollar weakness. Caution kept market activity limited ahead of first-tier data releases next Wednesday.
EUR/USD extends gains beyond 1.1400 amid renewed USD weakness Premium
EUR/USD hovers around 1.1420 early on Tuesday, regaining the upside amid concerns about global economic progress within the ongoing trade war between Washington and Beijing. European and US growth in the eye of the storm.
This is a big data week
This is a big data week, with Q1 GBP at midweek plus the employment cost data.
Week ahead: US GDP, inflation and jobs in focus amid tariff mess – BoJ meets
Barrage of US data to shed light on US economy as tariff war heats up. GDP, PCE inflation and nonfarm payrolls reports to headline the week. Bank of Japan to hold rates but may downgrade growth outlook. Eurozone and Australian CPI also on the agenda, Canadians go to the polls.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.