Swiss Franc continues to face downward pressure even amid ongoing geopolitical uncertainties

Swiss Franc Weakens Against Major Currencies

As Thursday's US trading session concludes, the Swiss Franc (CHF) is under significant pressure, declining against both the Euro (EUR) and the US Dollar (USD).

Key Drivers: Middle East Tensions, Energy Markets, and SNB Policy

The recent slide in the Swiss Franc has propelled USD/CHF to new multi-day peaks near 0.7850. Meanwhile, EUR/CHF has rebounded after two days of declines, inching up toward the 0.9040 mark.

Despite the current risk-averse environment, the Franc is losing ground to the US Dollar. Nevertheless, should geopolitical risks escalate further—a scenario many see as likely—the CHF may once again attract safe-haven flows.

Rising energy costs, with oil and gas prices surging, are also expected to lend support to the Swiss currency. This ongoing rally in energy markets casts doubt on any near-term relief from inflationary pressures in both Europe and the US.

Additionally, the prospect of potential intervention by the Swiss National Bank (SNB) serves as a warning to investors considering further gains in the Franc, especially amid heightened safe-haven demand.

Technical Levels to Monitor

• If USD/CHF surpasses the March high at 0.7878 (March 3), the next resistance could be the 100-day simple moving average at 0.7899, followed by the 200-day SMA at 0.7959.
• On the downside, a break below the March low at 0.7668 (March 2) may shift focus to the February bottom at 0.7628 (February 10) and then to the 2026 low at 0.7601 (January 28).
• For EUR/CHF, the next key support is the all-time low of 0.8980 (March 9).