CHF Currency Analysis

 

Currency Sentiment - Bearish 

 

This Swiss National Bank (SNB) continues to warn the market they will not allow the Franc to become overvalued in the FX market, through safe haven currency flows into Swiss Government bonds, as ongoing geopolitical tensions such as the US / China trade war increases the demand for the CHF. 

 

The Swiss National Bank says they are committed to keeping the currency weak against the EUR to help exports sales to Europe boost the amount of money coming into the economy and help get inflation up to the banks 2% inflation target. Europe is Switzerland's main trading partner so a weak CHF and a stronger EURO is crucial to helping drive export sales to Europe, boosting GDP growth and inflation.

 

For more details please visit the Central Bank Monitor page for details on economies.