Home›Forex›Major Pairs›Swiss franc pressured by carry trade demand and SNB se…

Swiss franc pressured by carry trade demand and SNB seen tolerant

FXStreet said CHF is the worst-performing G10 currency versus the US dollar so far in 3Q26, with analysts expecting weakness through year-end and possibly into end-2027.

Reported · Written up by our desk · Major Pairs

OCBC analysts Sim Moh Siong and Christopher Wong said the Swiss franc (CHF) remains under pressure as carry trade funding demand grows, a setup that keeps the currency from stabilizing even as broader risk and rate expectations shift.

They linked the franc’s softness to a view that Switzerland’s central bank is comfortable with a weaker currency, pointing to expectations that SNB policy rates are effectively anchored near zero due to subdued inflation.

The notes also cited recent Japanese yen (JPY) intervention as potentially reinforcing CHF’s role as a preferred funding currency in global carry trades.

FXStreet further reported that CHF is currently the worst-performing G10 currency against the US dollar so far in 3Q26, and that the downtrend could persist at least through year-end and potentially extend to the end of 2027.

More like this

Sources