The Swiss Franc is the strongest since lifting up the euro/franc minimum exchange rate

On Friday evening the EUR/CHF exchange rate reached the 1.14 mark and with it not only the weekly high and the high of the year, but also the highest level since the Swiss National Bank decided to lift up the minimal exchange rate of 1.20 on September 2015. With this dramatic change of the exchange rate the Swiss franc has lost to the Euro over 3% of its value within one week.

There is no doubt that the current trend is due to the good global economic data and political stabilization in Europe. Such a leap, however, is seen by many experts as a sign of further interventions by the Swiss National Bank. The SNB could use the good situation to support the downward trend of the franc.

The economic situation in Switzerland remains also positive. Exports rose in the last quarter to an all-time high despite a relatively strong Swiss franc and the unemployment rate remains low.

In addition, the franc loses not only against the euro, but also against the US dollar. On Friday, the USD has moved above 0.97 Swiss francs for a US dollar. Given the stable economic situation in Switzerland, this is another indication that the SNB was active.

If we look on the USD/EUR pair, we can see, that the weaker rise in the dollar against the euro is due to the political situation in the USA. Analysts have doubts  regarding the implementation of many of President Trump's election promises. The most recent example would be the failure of the health reform in which a new edition of the system introduced under President Obama is supposed to bring considerable savings for the budget.

In the meanwhile, Europe can celebrate the next economic success. In France, the second largest economy in Europe, GDP grew by 0.5% in the first half of the year. The country was in a stagnation since the economic crisis almost 10 years ago. The improvement in the situation has had a strong impact on the overall positive development in the Eurozone and thus on the appreciation of the euro.