The Swiss franc (CHF) is sometimes referred to as a haven currency, favoured by some investors because of its reliance and stability.
Due to Switzerland’s location, its currency has enjoyed a direct correlation with the Euro (EUR), and the CHR/EUR cross-currency pairing is the third most-traded pair on the market . With forecasts for high growth for the Euro in 2020 against the U.S dollar, how will the CHF fare?
The CHF is already enjoying an incredibly strong start to 2020 and is so far one of the best-performing currencies of the year, outperforming the pound, dollar and yen for the top spot . Its performance is so strong that economic forecasters predict the Swiss National Bank (SNB) may consider lowering their interest rates to support signs of a slowing economy .
However, with Washington recently announcing that they’ve added the Swiss National Bank (SNB) to a watchlist of suspected currency manipulators, this may be a warning to Swiss financial authorities to avoid intervention or risk possible sanctions from the US Government.
The uncertainty of Brexit and concerns over a possible global recession have negatively impacted the Euro over the last two years, which is making some economic forecasters predict a creditable 2020 for the Euro . And, with the Swiss franc being closely paired with the success of the Euro, this is bound to have a considerable impact.
For an up-to-date view on how the Swiss franc is faring and to understand how other currencies are trading, use our currency converter today to see the type of rate that WorldFirst can offer your business.