Super-Strong Swiss Franc Pulls Economy Back Toward Deflation - And Puts the SNB on a Tightrope
June 07, 2025Frankenshock 2.0: Ten Years of Relentless Appreciation
June 7 - Since President Trump’s return to the White House, the Swiss franc’s trade-weighted index has climbed another 5 %. That move caps a cumulative rise of roughly 20 % in five years and 33 % over the last decade, confirmed by the latest SNB data. Thanks to Switzerland’s political stability and historically low inflation, global investors treat CHF as the ultimate safe-haven asset - flooding into it whenever the geopolitical weather turns stormy.
Read MoreTrade Truce Lifts Markets, Swiss Franc Steadies Near Highs
May 12, 2025Historic 90-Day Tariff Rollback
MAY 12 - Washington and Beijing have agreed to slash punitive levies for three months, cutting U.S. tariffs on Chinese goods to 30 % from 145 % and Chinese duties on U.S. imports to 10 % from 125 %. The surprise deal—hammered out at weekend talks in Geneva—pauses a trade war that had effectively frozen nearly $600 billion in two-way commerce and rattled global supply chains.
Read MoreSNB Signals Willingness to Revive Negative Rates as Franc Strengthens
May 06, 2025Swiss Inflation Hits 0 %, Testing the SNB’s Target
MAY 6 - April consumer‑price data showed Swiss inflation flat at 0 %—its lowest reading in four years and exactly at the floor of the Swiss National Bank’s 0–2 % stability band. The print has intensified market bets that the SNB will cut its policy rate from 0.25 % at the 19 June meeting and could push borrowing costs back below zero before year‑end.
Read MoreSwiss Franc Steadies Near Highs, Dollar Slips; Euro and Asian FX Follow
May 05, 2025Swiss Franc Holds Safe‑Haven Ground Despite Rate‑Cut Bets
Even after Swiss inflation fell to a four‑year low in April—and markets priced in another Swiss National Bank rate cut next month—the franc showed little sign of weakness. USD/CHF slid 0.45 % to CHF 0.8228, close to decade‑strong levels, while EUR/CHF stayed firm at 0.934. The currency’s resilience highlights its enduring appeal as a safe‑haven asset, undeterred by expectations of a return to sub‑zero Swiss rates later in 2025.
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Dollar Finds a Foothold as Trade Hopes Emerge, but Swiss Franc Holds Firm
April 25, 2025Greenback Eyes First Weekly Rise Since March
APR 25 - The U.S. dollar nudged higher on Friday, poised for its first weekly gain in nearly two months after Beijing issued selective tariff exemptions on American goods. The gesture stoked cautious optimism that the protracted U.S.–China trade conflict could be easing, even as both sides offered conflicting accounts of ongoing negotiations.
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