Buy EUR Falls to 0.9348: CHF Earners Get 40.5 CHF Relief After Mid-August High

That is 40.5 CHF less than at the 0.9429 rate seen on 17 August and 43 CHF less than at the recent 0.9434 high from 14 August. The move gives CHF earners noticeable relief after the sharp increase in euro costs seen earlier this month.

Euro Costs Pull Back from Recent Highs

At 0.9348, buying 5,000 EUR costs 4'674 CHF, compared with 4'714.5 CHF at the 0.9429 rate from 17 August.

The improvement is significant, but it does not completely reverse the summer move. Compared with the 0.9230 reference point from 3 July, buying 5,000 EUR still costs 59 CHF more.

For workers tracking EUR/CHF, euro CHF, CHF to EUR, EUR to CHF or the current euro exchange rate, the latest move represents a clear correction from the mid-August highs.

Swiss Franc Draws Attention as a Carry-Trade Currency

One of the more interesting developments for the franc is growing investor interest in using CHF as a funding currency for carry trades.

With the SNB policy rate still at 0%, borrowing in Swiss francs can remain relatively cheap compared with currencies offering higher interest rates. This may create additional selling pressure on CHF if investors increasingly use the franc to finance positions in higher-yielding currencies.

The development is a medium-term factor rather than a direct explanation for the latest EUR/CHF move, but it adds another element to the outlook for the Swiss currency.

German Investor Sentiment Improves

Fresh data from Germany provided a more positive signal for the euro-area economy.

The ZEW economic sentiment index increased to 34.2 points in August from 26.3 in July, beating expectations. The assessment of current conditions also improved noticeably.

The figures suggest that expectations for Germany are becoming less pessimistic, although the current economic situation remains challenging. For the euro, stronger confidence in the region’s largest economy provides supportive background rather than a clear short-term exchange-rate trigger.

Eurozone External Balance Strengthens

The eurozone also recorded a larger current-account surplus.

The seasonally adjusted surplus increased to 35.1 billion EUR in June from 25.8 billion EUR in May. A stronger external balance can be supportive for the euro over time because it reflects more money flowing into the currency area through trade and investment income than flowing out.

At the same time, markets continue to expect further monetary tightening from the ECB, while the SNB remains at 0%. The interest-rate difference therefore remains an important background factor for EUR/CHF.

Rate Comparison Still Matters

For a 5,000 EUR exchange, the rates shown on ExchangeMarket.ch give the following costs:

ExchangeMarket.ch: 4'674 CHF

PostFinance: 4'737.5 CHF

Migros Bank: 4'742.5 CHF

BCV: 4'743.5 CHF

BCGE: 4'751.5 CHF

The difference ranges from 63.5 CHF compared with PostFinance to 77.5 CHF compared with BCGE.

Practical Takeaway

At 0.9348, buying 5,000 EUR costs 4'674 CHF, giving CHF earners a 40.5 CHF improvement compared with the 17 August rate.

The latest move marks a meaningful correction from the mid-August highs, but EUR/CHF remains above the more favourable levels seen at the beginning of July. The next direction will depend on ECB rate expectations, the SNB’s continued zero-rate policy and whether renewed demand for the franc can offset its growing role as a low-cost funding currency.