The Currency Converter

Currency Exchange Rates: An update for the Swiss Franc

November 25th, 2010

The Swiss National Banks chairman commented that the Francs appreciation will at some point weigh on Swiss exports. As we know the Franc has been strong for some time now and it is surprising that the Swiss trade balance continues to print a surplus. There are several different reasons for this, the strong increase in exports to Asia being one. Also a growing demand for consumption and pharmaceutical goods. The general consensus amongst traders is that Switzerland can keep tight monetary conditions combining Franc strength and low interest rates without seeing a reduction in economic activity. As long as tensions remain high between North and South Korea and cracks continue to appear in the Euro zone then Safe haven assets like the Franc will remain strong. Expect EUR CHF to get to 1.30 over the medium term and USD CHF to stay below or close to parity next year.

Today sees the US Thanksgiving holiday which should contribute towards lower trading volumes and less volatility.

Written by James Rowe

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