Swiss National Bank Muscle Keeps EUR/CHF Off Lows but Recovery Prospects Uncertain

The Pound-to-Franc exchange rate rose on Thursday but could have much further to climb in the event that a Brexit trade deal is reached in the coming weeks, which has led Credit Agricole CIB to tip GBP/CHF as a buy. 

The Franc was left struggling Thursday after the Swiss National Bank (SNB) reiterated a threat of intervention on behalf of the economy and in the name of domestic inflation, although the nearing U.S. election and ongoing Brexit process are tipped to see the safe-haven currency recover before long. 

The Swiss Franc appeared to be the world's top performing currency Thursday as the Euro faltered against the Dollar while the U.S. unit ceded ground to safe-haven counterparts, raising the risk of intervention from the Swiss National Bank and one that could grow if a EUR/USD correction takes hold.

The Pound will likely extend a multi-week advance against the Swiss franc over the remainder of 2020, provided the economic normalisation underway in the UK and across the global economy remains intact.