CHF Hits 1.0840 EUR: Safe-Haven Flows and Legal Wins for Cross-Border Workers (Weekly Recap)
January 26, 2026The "Greenland Effect": Why the Franc Spiked
The Swiss Franc (CHF) confirmed its status as the ultimate safe-haven currency this week. The primary catalyst was the sudden escalation in trade rhetoric from the US administration. On Monday, January 19, President Donald Trump proposed new tariffs on eight nations opposing his plans regarding Greenland. This geopolitical surprise triggered an immediate "flight to safety" across global markets.
Investors rushed to the Franc, pushing it to a new monthly peak.
Start of the week (Jan 19): ~1.0768 EUR per 1 CHF
Peak (Jan 23): 1.0840 EUR per 1 CHF
Weekly Gain: Approximately 1.8% against the Euro.
On Friday, the Franc reached levels not seen earlier this month, outperforming even the US Dollar in relative strength.
SNB Stance: Watching but Waiting
The rapid appreciation of the Franc is being closely monitored by the Swiss National Bank (SNB). With interest rates held at 0% and domestic inflation projected at a mere 0.3% for 2026 (compared to ~1.9% in the Eurozone), the fundamental pressure on the Franc remains upward.
However, a too-rapid rise hurts Swiss exporters. SNB officials signaled this week that while a gradual appreciation towards 0.91 EUR (EUR/CHF pair) is part of the long-term forecast, they remain ready to intervene in the forex market if volatility becomes excessive.
Cross-Border Workers: A Week of Legal Victories
Beyond the favorable exchange rate, this week brought significant regulatory news for those living in the EU and working in Switzerland.
1. EU Court Ruling on Pensions (Jan 22) In a landmark decision on January 22, the Court of Justice of the European Union delivered a ruling that strengthens social security protection for cross-border workers. The decision clarifies pension rights, potentially entitling thousands of commuters (especially from Italy) to retroactive top-ups. This provides much-needed legal certainty for long-term career planning.
2. Italy Ratifies Telework Protocol (Jan 21) Good news for the Frontalieri in Ticino: Italy formally ratified the new telework protocol (Law 217/2025) on January 21. This replaces temporary pandemic-era rules and provides a permanent framework for working from home without risking dual taxation or social security complications.
3. France: The 40% Rule in Action For workers commuting from France, the new permanent regime allowing up to 40% telework (taxation) and 49.9% (social security) is now fully operational. With the exchange rate hitting 1.0840 EUR, the purchasing power of a Swiss salary spent in France has rarely been higher.
Summary
The combination of geopolitical tension driving the Franc up and favorable court rulings makes late January 2026 an exceptionally good period for cross-border earners, though exporters remain wary of the currency's sharp rise.