The Swiss Franc is currently well bid on global foreign exchange markets courtesy of the broad risk-off sentiment overshadowing global financial markets.
Read more: Risk-Reward Favours Swiss Franc Downside say Swissquote, Eyes Turn to SNB Decision
The rise to power of an anti-establishment government in Italy has depressed the outlook for the Euro-to-Swiss-Franc exchange rate and led major investment bank, J.P. Morgan, to downgrade its forecast for the pair.
Read more: Euro-to-Swiss-Franc Rate Forecasts Cut at J.P. Morgan as Italian Risk to Boost Safe-haven Demand
The Swiss Franc is one of the few winners from the fallout of the political drama playing out in Rome
Read more: Swiss Franc Forecasts Amidst the Italian Political Flare-up
The Franc is strengthening on investor flight to safety, however, the central bank will want to keep the currency capped, says BMO's Gallo.
Read more: GBP/CHF: Giving Bullish Chart Signals
The EUR/CHF rate has fallen due to a weakening Euro and more recently a rising Franc, which has led to a reversal in the short-term trend, now more storm clouds lie on the horizon.
Read more: EUR/CHF is Falling as New Factors Indicate Bullish Cycle May Be Starting For Franc