Will the Swiss Franc Continue to Gain in Currency Trading?

Risks to the Swiss franc rally

One of the best performers this year on the FX market has been the Swiss franc. It has everything going for it: traditional safe haven status and an expanding economy with inflation kept under wraps.

However, the Swiss franc may not see such progress as the year comes to a close, and as European sovereign debt issues come up again. GFT’s Boris Schlossberg lays out the challenges in FX360:

However, if EZ growth begins to wane into the end of the year while at the same time EZ sovereign debt concerns return, accelerating the fall in EUR/CHF the economic picture for Switzerland may no longer look so benign as the country’s critical export sector could face a much more challenging environment in 2011.