
The Swiss franc has underperformed recently despite its traditional safe-haven status. However, if the Israel-Iran situation deteriorates further and risk sentiment weakens, a return to CHF strength is likely. Meanwhile, the euro remains weighed down by softer inflation data and lacklustre growth in the Eurozone. With the ECB staying cautious and downside risks building in European assets, CHF could begin to regain its haven appeal.

A sharp risk-off move tied to military escalation

Weak Eurozone inflation or soft PMI prints

SHORT EURCHF

Jun 19 2025