Don't Expect the Swiss Franc Rally to Last

The Swiss franc may have made a dramatic comeback after falling past what was once its exchange-rate cap, but the gains may not last.

The currency, which has rallied more than 3 percent since testing the 1.20 level last month, seems to have mostly priced in the Italy risks and it’s only a matter of time before it resumes the weakening trend, according to Nordea Bank AB. Andreas Steno Larsen, a currency strategist at the Swedish bank, sees it retreating to 1.18-1.19 by year-end while Canadian Imperial Bank of Commerce also has a similar prediction.