Risk aversion gives Swissie strength

MARKET NEWS

The Swissie benefited from risk aversion last week. But that may change, to the currency’s cost, says Sabrina Jacobs, FX strategist at Dresdner Kleinwort Wasserstein in Frankfurt

While the Swiss franc remained well supported against the euro over the course of last week, it did give back some of the previous week’s gains against the US dollar. The negative correlation between $/Sfr and e/$ has been very high since the introduction of the single currency. Throughout the last few months this re