The Euro (EUR) continued to weaken against the Swiss Franc (CHF) on Friday, with EUR/CHF sliding to levels not seen since the Swiss National Bank (SNB) scrapped its exchange-rate floor in 2015. At the time of writing, the pair trades near 0.9188, marking its fifth consecutive daily decline as bearish momentum accelerates.
Analysts note that the Franc is gaining from elevated volatility across global markets, as a sharp selloff in equities—driven by renewed concerns over stretched AI valuations—boosts demand for haven assets. Sentiment toward the Swiss economy has also improved following reports that Switzerland and the United States may be close to an agreement that would reduce US tariffs on Swiss exports from 39% to roughly 15%.
The current price zone carries added historical weight, echoing conditions last seen during the SNB’s shock decision in January 2015 to abandon its CHF 1.20 per EUR minimum exchange rate. The move triggered one of the most dramatic FX swings in modern history, with EUR/CHF collapsing within minutes as the Franc surged between 20% and 30% against the Euro.
The SNB later justified the decision by noting that the international backdrop had shifted to a point where maintaining the floor would require “permanent currency interventions of rapidly increasing magnitude,” forcing policymakers to abandon the cap.
The Franc’s renewed strength against major peers now places attention on the risk of SNB intervention should the currency’s appreciation begin to undermine Switzerland’s economic outlook. With the economy heavily reliant on exports, a stronger Franc can rapidly erode competitiveness for domestic firms.
On the Euro side, steady Eurozone data offered little support. Preliminary Eurozone Gross Domestic Product (GDP) grew 0.2% QoQ, matching expectations and unchanged from the previous 0.2%. On an annual basis, GDP rose 1.4%, slightly above the 1.3% forecast and prior reading. Employment Change increased 0.1% QoQ in Q3, also in line with consensus and unchanged from the previous quarter.
