Swiss Franc Weakness Extends as Carry Trade Demand Grows, OCBC Says
The Swiss Franc remains under pressure as demand for carry trade funding increases and recent yen intervention reinforces CHF's appeal as a funding currency, OCBC analysts note.
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OCBC strategists Sim Moh Siong and Christopher Wong observed that the Swiss franc continues to face headwinds. Growing appetite for carry trades keeps the franc in demand as a funding currency, pressuring its value.
Additionally, recent intervention by Japanese authorities to support the yen has further cemented the franc's status as a go-to funding vehicle, as traders seek alternatives to the low-yielding yen.
Source: FXStreet Forex News