A calmer situation on the markets leas to a weaker swiss franc.

The nervousness that prevailed in the financial markets in recent months is breaking. This is above all due to the success of Emanuel Macron. After the election of Donald Trump as president of the United States and the upswing of Marine Le Pen in the polls, many have feared a domino effect resulting in the election of populist-minded candidates, including ones in Germany. However, the election of Macron shows that the French has opted for an open market economy with few trade barriers.

Investors are thus counting with a continued economic upswing that will be reflected in rising corporate profits and rising share prices. At the moment, the shares of European companies are considered to be relatively under-rated, which makes them more attractive to others.

This situation has a direct impact on the euro. In order to buy attractive European securities, investors need to buy euro, which strengthens the euro. At the same time, there is a weakening of the Swiss franc - on the one hand, because some of these investors are selling francs to buy euros, on the other hand because the Swiss franc serves as an attractive financing and refinancing currency. Due to the currently much lower interest rate than other currencies, loans can be raised in CHF at very favorable rates, and used to finance acquisitions in euros or refinancing existing loans in other currencies. These intentions are followed by a sale of the Swiss currency, which further weakens the Swiss franc. The accumulation of these two effects resulted in an almost 2-percent exchange rate change on the EUR / CHF currency pair during the last week, with the exchange rate approaching the 1.10 mark.

A weaker Swiss franc and a stronger euro can therefore continue to be expected. The Swiss National Bank (SNB) and Swiss export companies are likely to look forward to this development. Cross-border commuters and Swiss companies who purchase goods and services abroad, should adjust to a weaker Swiss franc in the coming months.