Swiss Franc Slides Further as Euro Extends Rally Into Fourth Day
- Morgan Stanley sees potential for CHF to fall toward 1.20/EUR
- Sweden’s krona gains as economy grows more than expected
Swiss Franc Continues to Weaken as Selloff Deepens
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The Swiss franc was the biggest loser among its Group-of-10 peers, extending a selloff to reach the weakest level versus the euro since the Swiss National Bank abandoned its currency cap more than two years ago.
The franc dropped for a fourth day against the euro, with traders flagging sell orders being triggered above 1.12. Talks of initial placement offerings, or IPO, related flows have also supported the move. “There is potential to get to 1.20 in the coming quarters,” strategists at Morgan Stanley including Hans Redeker, wrote in a note to clients. “The CHF is the most overvalued G-10 currency,” they added.