Although the Swiss Franc has been the strongest currency in the world, the purchasing power degradation in ‘real’/’hard’/gold terms over the last 20 years has been massive
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We briefly bounced at the range lows, but the move has been weak and lacks follow-through. Now sitting well below the 200-day moving average, with the 21-day crossing lower, a bearish shift in trend dynamics. Last time this setup played out, the euro didn’t stabilize, it continued the move lower. Source: The Market Ear, LSEG
Last time it caught strong bids and squeezed for some 6 months. A similar move would tighten financial conditions quickly. Source. TS Lombard, TME
Amid global uncertainty, the Swiss franc surges, pressuring exports and keeping inflation at 0.1%. The SNB plans aggressive intervention: selling francs and buying foreign currencies to weaken the franc. This may trigger U.S. tensions due to past manipulation accusations and tariffs. Switzerland faces a dilemma: protect its economy or avoid political backlash, highlighting how central banks now navigate inflation, geopolitics, trade wars, and market psychology. Source: CNBC

