CHF/EUR exchange rate

The Trump administration announced its intention to impose a 30% tariff on European goods exported to the United States, with the measure scheduled to take effect on August 1, 2026. The European Union refrained from retaliatory action and instead expressed its willingness to continue negotiations in search of a mutually acceptable agreement.

At the same time, the Swiss government summoned SNB Chairman Martin Schlegel for discussions regarding the central bank’s foreign exchange market interventions, which have long been viewed with suspicion in Washington. A U.S. deadline for concluding a trade agreement with Switzerland passed without consequences following the Supreme Court ruling that had reshaped the legal framework governing tariffs. The Swiss franc partially retreated from its March highs, with CHF/EUR stabilizing around 1.08–1.09 in the weeks that followed.

Driven by escalating geopolitical tensions and a strong flight to safety, the CHF/EUR exchange rate experienced a sharp upward surge. On March 9, 2026, the pair briefly surpassed the psychological threshold of €1.10 per Swiss franc, reaching a level not seen since the Swiss National Bank abandoned its currency peg in 2015.

The recent escalation of tensions in the Middle East—particularly involving Iran—rekindled fears of an oil supply shock and persistent energy-driven inflation in Europe, prompting international investors to seek the neutrality and stability of the Swiss franc. March 9, 2026, marked a ten-year low for EUR/CHF at 0.900 Swiss francs per euro and the corresponding high for CHF/EUR at €1.101 per Swiss franc.

The new tariffs imposed under the IEEPA (International Emergency Economic Powers Act) in 2025 were ruled unlawful by the U.S. Supreme Court in February 2026. The decision created significant uncertainty across financial markets, as it temporarily dismantled the existing tariff regime and opened the door to bilateral negotiations and a new tariff framework based on different provisions of U.S. trade law.

The week between February 22 and 27, 2026, was marked by this landmark ruling, rising tensions in the Middle East, and an escalating trade conflict between the United States and China, with tariffs reaching 100%. The combination of these factors once again drove investors toward the Swiss franc as a safe-haven currency, strengthening the CHF against the euro.

In its final meeting of 2025, the European Central Bank (ECB) kept its deposit rate unchanged at 2%, marking the fourth consecutive pause in the rate-cutting cycle that began in June 2024. Inflation forecasts for 2026 were revised upward to 1.9% from 1.7%, indicating that the ECB was in no rush to implement further cuts.

The CHF/EUR pair was influenced by this environment: with the ECB holding rates at 2% and the SNB at 0%, the interest rate differential continued to support the Swiss franc relative to the euro. The exchange rate stabilized around 1.065–1.077 EUR per CHF, moving sideways as investors awaited further monetary policy developments in 2026.

The Swiss National Bank (SNB) kept its policy rate unchanged at 0% during its 2025 meetings, reiterating its willingness to intervene in foreign exchange markets if necessary. Chairman Schlegel emphasized that the SNB remains prepared to reintroduce negative interest rates should conditions warrant such a move, while acknowledging the potential side effects of this policy tool.

The Swiss franc reached its highest level of 2025 on November 13, with a CHF/EUR exchange rate of 1.0841. The strength of the franc during this period was supported by a combination of factors, including a gradual shift by investors away from riskier assets, weakness in the European economy, and Switzerland’s enduring appeal as a safe-haven destination amid ongoing global geopolitical uncertainty.

President Trump imposed a 39% tariff on goods imported from Switzerland, making it one of the highest tariff rates applied to any U.S. trading partner—higher than the initially announced 31% and significantly above the 15% tariffs imposed on the European Union, Japan, and South Korea. The decision was driven by the administration’s goal of reducing the U.S. trade deficit with Switzerland, which had reached $38 billion in the previous year, and encouraging companies to relocate production to the United States.

From a CHF/EUR exchange rate perspective, the announcement paradoxically weakened the Swiss franc in the short term. Markets interpreted the tariffs as a direct economic risk to Switzerland’s export-oriented industries, including watchmaking, machinery, and pharmaceuticals, prompting EUR/CHF to rebound toward 0.93 after reaching lows earlier in the summer. At the same time, given the low inflation associated with the franc’s strength and the economic challenges posed by the tariffs, speculation increased that the SNB could return to negative interest rates as early as September 2025.

On June 19, 2025, the Swiss National Bank (SNB) cut its policy rate by 25 basis points, bringing it down to 0.00%. This marked its sixth consecutive rate cut since March 2024, bringing borrowing costs to the threshold of negative territory. The decision was driven by declining inflation—which fell to -0.1% in May—as well as the persistent strength of the Swiss franc and ongoing global economic uncertainty linked to trade tensions.

Despite the rate cut, the SNB’s accommodative stance was offset by continued demand for the Swiss franc as a safe-haven currency, allowing the euro to appreciate by approximately 0.8% over the previous four weeks. The CHF/EUR pair remained within a sideways range between 1.060 and 1.070, suggesting that the market had already priced in the move. SNB Chairman Schlegel stated that the central bank was “on the threshold of negative interest rates” and reiterated its willingness to intervene in the foreign exchange market if necessary.

In response to international pressure for an extension of the three-day ceasefire implemented by Russia in early May 2025, President Putin proposed resuming direct negotiations with Ukraine in Istanbul. Although neither leader attended in person, the talks resulted in an agreement on the exchange of prisoners of war and a commitment to continue diplomatic dialogue. A second round of negotiations took place on June 2, during which both sides presented their respective peace memoranda.

At the same time, a temporary trade truce between the United States and China was reached, easing concerns about a full-scale global trade war. The combination of these two developments reduced demand for the Swiss franc as a safe-haven asset, allowing the euro to recover some ground from the lows recorded in April.

On April 2, 2025, President Trump announced the introduction of “reciprocal” tariffs on all U.S. trading partners, in what his administration dubbed “Liberation Day”. The measure triggered a wave of volatility across global markets and marked the climax of a first half of 2025 characterized by growing uncertainty, driven by a combination of trade tensions, evolving geopolitical dynamics, and mounting concerns over the fiscal sustainability of the United States.

For the CHF/EUR pair, the impact was immediate: the exchange rate reached its highest level of 2025 up to that point, hitting €1.082 per Swiss franc on April 15, 2025. The CHF benefited from its traditional role as a safe-haven currency: amid heightened global trade uncertainty, investors moved capital into Switzerland, while the euro came under pressure due to concerns about the potential recessionary impact on Europe’s key trading partners.

In March 2025, the European Union announced a historic plan for common defence, introducing a significant shared budget, with funds of up to 150 billion euros earmarked for the joint procurement of European weapons systems and more flexible fiscal measures to incentivise defence investment. This step represents a strategic turning point aimed at strengthening the EU’s autonomous defence capability, in response to growing geopolitical threats and the need for greater coordination among member states.
From the perspective of the CHF/EUR currency pair, the announcement had a temporary positive impact on confidence in the euro, strengthening it against the Swiss franc. The creation of a common defence budget represents a signal of greater cohesion and political stability in the eurozone, elements that attract currency investors and improve the perceived solidity of the single currency. As a result, the franc showed a momentary weakening against the euro, reflecting the rise of the European currency following this important strategic EU initiative.
In summary, the EU defence plan of March 2025 boosted confidence in the European project and its capacity for strategic autonomy, exerting a direct strengthening effect on the euro against the Swiss franc in the CHF/EUR pair, even though this effect was more temporary in nature, linked to the political impact and sentiment on the currency market.

On March 14, 2025, the CHF/EUR pair hit its annual low at 1.0372, indicating a phase of weakness of the Swiss franc against the euro. This level represents the lowest point of the year for the franc against the euro, reflecting investor preference for the European currency during that period.
From a technical standpoint, this low constitutes a critical support level for the CHF/EUR pair, below which the franc has shown difficulty in strengthening further against the euro. After reaching this low, a trend reversal began, with the franc regaining value against the euro.
In summary, the CHF/EUR low of March 14, 2025 was a key signal of a moment of franc weakness followed by a reversal, indicating shifts in market conditions and economic expectations between the eurozone and Switzerland.

On January 30, 2025, the European Central Bank decided to cut its reference rates to 2.75%, marking a significant signal of monetary easing in a still fragile European economic environment. This move was driven by the need to stimulate domestic growth and support the recovery of consumption and investment, amid signs of economic slowdown and inflation that remains under control but volatile. The decision reflects the ECB’s intention to maintain favorable financial conditions, even at the cost of a temporary weakening of the single currency.

From a foreign exchange market perspective, the rate cut immediately put downward pressure on the euro. Investors tend to favor currencies with higher yields, and in this scenario the Swiss franc, traditionally perceived as a safe haven and supported by more conservative monetary policies, has strengthened against the euro. The divergence between ECB and Swiss National Bank policies has therefore amplified capital flows toward Switzerland, fueling CHF appreciation.

From a broader perspective, this rate cut has implications for cross-border workers and transnational businesses, as a stronger franc makes consumption and investment in euros more expensive and affects the purchasing power of those who earn salaries in francs but spend in euros. At the same time, Swiss exports become slightly more expensive for European partners, highlighting the interconnection between monetary policy and trade flows in the region.

On January 20, 2025, Donald Trump’s return to the White House marked a significant event in international politics.

Trump, who previously served as the 45th president from 2017 to 2021, became the 47th President of the United States after winning the 2024 election against Democratic candidate Kamala Harris.

He began his term by issuing a series of executive orders, including commuting sentences related to the attacks on Congress and implementing measures to lower energy costs. He also promised to fight inflation and announced his intention to impose trade tariffs on Canada and Mexico. In foreign policy, he reaffirmed the “America First” approach, pulling out of the WHO and overhauling foreign aid.

Trump’s return heightened geopolitical uncertainty, affecting financial markets and international relations, particularly with China and Europe (and potentially impacting Switzerland as well).

In 2024, financial markets displayed varying degrees of volatility depending on asset classes and regions.

Overall, the equity market recorded positive performances, with double-digit gains in both Europe and the U.S. Nevertheless, there were periods of volatility, especially during the summer, influenced by factors such as the U.S. presidential elections and Middle East tensions.

The bond market initially exhibited unprecedented volatility caused by rising interest rates and rebounding inflation, driving up yields and devaluing lower-coupon bonds. Unexpectedly, during the summer, conditions reversed as inflation receded and macroeconomic data turned less favorable, fueling a bond market rally.
Globally, the MSCI World Index saw a notable decline in July and August, ending that period with a 7.66% loss.

Volatility was more restrained for some indices than in the past; for instance, the European market posted lower volatility compared to 2023.

In sum, 2024 was a contradictory year for financial markets, featuring positive equity performance but bond-market volatility, shaped by geopolitical and macroeconomic factors.

In 2024, geopolitical tensions played a dominant role on the global stage, significantly impacting the world economy.

Key developments:

• Russia-Ukraine conflict: Ongoing warfare and stalemates kept geopolitical uncertainty high, affecting energy markets and global supply chains.
• Middle East tensions: The war between Hamas and Israel raised concerns about regional stability, with potential spillover into energy markets.
• U.S.-China competition: Geopolitical rivalry between these two powers remained a central global theme in 2024, influencing both trade and strategic relations.
• 2024 U.S. presidential election: Viewed as a critical point for global geopolitics, with major implications for international relations and commerce.
• Expansion of BRICS: New members bolstered the group’s economic and political clout, contributing to the fragmentation of the traditional world order.

These events maintained high geopolitical uncertainty, weighing on financial markets and global economic decisions. According to the ECB, tensions shaved roughly one percentage point off Eurozone GDP growth in 2024.

In 2023, rising inflation became a key challenge for central banks worldwide. Driving factors included the post-pandemic economic recovery, increasing commodity prices, and geopolitical strains such as the Russia-Ukraine war.

The European Central Bank (ECB) responded by raising interest rates to rein in inflation. Up to September 2023, it implemented ten consecutive increases, pushing its benchmark rate to a record 4.50% on September 20, 2023, aiming to curb demand and tame runaway prices in the euro area.

However, from October 2023 onward, the ECB halted these hikes, leaving rates unchanged at the December 14, 2023 meeting. This decision stemmed from the projected drop in inflation in 2024—later confirmed—and 2025, targeting a return toward the 2% goal.

Higher rates had a major effect on the European economy, raising borrowing costs for households and businesses, and amplifying financial market volatility, with possible repercussions on currency exchanges.

The war between Russia and Ukraine is a multi-phase conflict, initially surfacing in 2014 but dramatically escalating on February 24, 2022.

It began with Russia’s annexation of Crimea in February 2014, triggering prolonged tensions. In 2014, pro-Russian separatists in Donetsk and Luhansk regions demanded independence, leading to low-intensity hostilities that lasted for years.

Things took a more serious turn in February 2022, when Russia officially recognized the separatist republics of Donetsk and Luhansk and deployed troops in the Donbas. On February 24, 2022, a full-scale invasion of Ukraine commenced, featuring aerial and missile strikes on strategic targets nationwide, including Kyiv.

The consequences have been severe: roughly 18% of Ukrainian territory is occupied by Russia, and millions of Ukrainians have been forced from their homes, with over six million seeking refuge abroad. The international community imposed harsh economic sanctions on Russia, and NATO stepped up its military presence in Europe.

This conflict has considerably affected global energy and financial markets, driving up commodity prices and heightening currency market volatility.

The COVID-19 pandemic was a global outbreak caused by the SARS-CoV-2 virus, which emerged in Wuhan, China, at the end of 2019.

Key timeline:

• November 2019: The first confirmed SARS-CoV-2 case dates to November 17, though publicly revealed on January 13, 2020.
• December 2019: Initial patients reported on December 8, and the WHO was notified on December 31.
• January 2020: On January 10, the virus’s genetic sequence was shared. On January 30, the WHO declared a Public Health Emergency of International Concern.
• February 2020: Rapid global spread. In Italy, the first outbreak was found in Codogno on February 21.
• March 2020: The WHO announced a pandemic on March 11. Many countries adopted lockdowns to contain the virus.

Economic and social impact:

The pandemic caused major disruption, including economic shutdowns, a global recession, and heightened volatility in financial markets. Currencies like the Swiss franc were seen as safe havens in this period. The WHO officially declared the end of the pandemic on May 5, 2023.

The trade war between the United States and China began in March 2018, when President Donald Trump announced tariffs on $50 billion worth of Chinese goods, citing unfair trade practices and intellectual property theft.

China retaliated by imposing tariffs on U.S. products, including soybeans—one of America’s top exports to China.
Over time, the dispute escalated, with both countries increasing tariffs on a wide array of products: the U.S. slapped 25% tariffs on $34 billion of Chinese imports, while China levied 25% on $545 million of American goods.

This trade war significantly impacted both the global and local economies, affecting supply chains and driving up consumer prices.

The 2017 cryptocurrency boom was a major turning point for the market, as Bitcoin prices soared to nearly $20,000, while total crypto market capitalization passed the trillion-dollar mark.

This phenomenon was fueled by a wave of speculative interest, notably in Japan and South Korea, where many retail investors were lured by the promise of high returns and the rising popularity of cryptocurrencies. However, the market experienced a sharp downturn in 2018, as Bitcoin’s price dropped significantly.

Subsequent years brought ongoing volatility; between 2020 and 2021, the market rallied anew, with Bitcoin again reaching record highs, surpassing $60,000.

The Brexit referendum took place on June 23, 2016, in the United Kingdom and Gibraltar, with voters opting by 51.9% to leave the European Union, against 48.1% wishing to remain.

Turnout reached 72.2% of the 46.5 million eligible voters. England and Wales largely backed leaving, whereas Scotland and Northern Ireland voted to remain. The outcome led to the resignation of Prime Minister David Cameron and triggered negotiations for the UK’s exit, formally launched in March 2017 by invoking Article 50 of the Lisbon Treaty.

The referendum strongly impacted financial markets, with the pound sterling undergoing a substantial depreciation versus other major currencies, including the euro.

China’s 2015 stock market crash was a significant financial event, hitting the Shanghai and Shenzhen exchanges.

The crisis was triggered by an economic slowdown and a speculative bubble in equities, which had seen a 150% surge between June 2014 and June 2015 without matching corporate profitability.
The collapse started in June 2015 and reached its nadir on August 26, when the CSI 300 Index fell by about 45%. Chinese authorities attempted interventions (banning major shareholders from selling, deploying state funds to buy shares) with limited success.

The crisis also led to a renminbi (yuan) devaluation in August, intensifying global market tension. Despite the turbulence, China’s financial system is relatively insulated, limiting the global fallout.

On January 15, 2015, the Swiss National Bank (SNB) ended its euro peg, which had been set at 1.20 CHF per euro in September 2011.

This floor was implemented to shield the Swiss economy from excessive franc appreciation, but maintaining it grew increasingly difficult and expensive, especially as divergent EU and U.S. monetary policies caused the euro to weaken against other major currencies.

The decision to abolish the peg was a surprise, leading to a sharp rise in the Swiss franc: in mere minutes, the EUR/CHF exchange rate tumbled 40%, falling to around 0.80 CHF per euro.

This event significantly impacted financial markets, incurring losses for investors who had bet on preserving the peg. Simultaneously, the SNB further lowered negative interest rates on bank sight deposits to -0.75%, aiming to discourage franc demand and mitigate its appreciation.

The 2011 European sovereign debt crisis built on the global financial crisis of 2008 and the 2010 sovereign debt crisis. It primarily affected Eurozone countries known as “PIIGS” (Portugal, Ireland, Italy, Greece, and Spain), marked by high public debt and budget deficits.

European banks, heavily exposed to these nations’ bonds, suffered significant losses. In 2011, conditions worsened when Italian and Spanish bond yields rose, indicating investors’ doubts about these countries’ debt sustainability. In October, Eurozone leaders announced a 50% reduction in Greece’s debt and expanded the European Financial Stability Facility (EFSF) to roughly €1 trillion.

Consequences were severe: austerity measures were adopted, prompting recession and high unemployment. The crisis raised concerns about Eurozone viability, heightening global market volatility.

Amid this turmoil, the Swiss franc appreciated strongly as a safe haven. In August 2011, EUR/CHF neared parity, prompting the SNB on September 6, 2011, to set a 1.20 CHF per euro floor, aiming to limit the franc’s rise. The SNB defended this rate until January 15, 2015, when it was abandoned following the ECB’s quantitative easing program.

On May 6, 2010, the U.S. stock markets underwent a sudden and dramatic event known as the “flash crash.” Within just 10 minutes, the Dow Jones Industrial Average (DJIA) plunged over 1,000 points, then regained most of the losses by the session’s end.

The incident stemmed from a massive sell order of E-mini S&P 500 futures placed by the investment fund Waddell & Reed Financial, combined with high-frequency trading algorithms that rapidly intensified the price drop.
Navinder Singh Sarao, an independent trader, also played a notable role by using algorithms to generate sell orders, contributing to the downward pressure.

The 2010 flash crash raised serious concerns about market stability and led to regulatory revisions aimed at preventing future recurrences.

The 2008 global financial crisis was a devastating economic event, originating in the United States and quickly spreading worldwide.

Primary causes :

• Housing bubble: U.S. real estate prices were overinflated, and when the bubble burst, subprime mortgages defaulted, causing major bank losses.
• Mortgage securitization: Banks bundled mortgages into financial products (CDOs, CMOs), selling them worldwide and dispersing risk throughout the financial system.
• Bank failures: On September 15, 2008, Lehman Brothers declared bankruptcy, unleashing a global confidence crisis. Other institutions like AIG were rescued through government intervention.

Consequences:

A deep global recession followed, with economic contractions, job losses, and declining consumption. Governments and central banks responded by slashing interest rates and injecting liquidity to stabilize the financial system.

The 2008 crisis significantly impacted currency markets, influencing CHF/EUR. The Swiss franc, perceived as a safe haven, attracted investors during times of financial turmoil.

The WorldCom scandal was an accounting fraud involving the U.S. telecommunications firm WorldCom, accused of concealing debt and artificially inflating profits.

Its fraudulent techniques included capitalizing routine expenses (like line costs) as investments, leading to over $11 billion in fictitious earnings.

Key events:

• Discovery of the fraud by the SEC in June 2002, causing a precipitous drop in WorldCom’s share price and erasing $180 billion in value.
• The company filed for bankruptcy and underwent restructuring.
• On the legal front, CEO Bernard Ebbers received a 25-year prison sentence.

This scandal reinforced stricter accounting standards in the U.S., culminating in the Sarbanes-Oxley Act, designed to enhance corporate transparency and governance.

The September 11, 2001 attacks were a series of coordinated terrorist strikes by Al-Qaeda against civilian and military targets in the United States.

On the morning of 9/11, 19 terrorists hijacked four commercial planes, causing the death of 2,977 individuals and injuring over 6,000. The Twin Towers collapsed within two hours of impact, and the Pentagon sustained extensive damage. These events profoundly altered international policy and global security, igniting a “war on terror” and leading to military operations in Afghanistan and Iraq.

Initially, the 9/11 attacks did not have a major short-term impact on CHF/EUR, as currency markets often react more gradually and complexly to geopolitical turmoil. However, such global crises can boost demand for safe-haven currencies like the Swiss franc, possibly explaining the uptick between September 12 and 21, 2001.

The Enron scandal was an accounting and financial fraud involving Enron Corporation, formerly one of the world’s largest energy firms. The company employed complex financial structures to hide debt and inflate profits, aided by auditing firm Arthur Andersen.

Key milestones:

• October 2001: SEC investigation begins.
• November 2001: Share price collapse.
• December 2, 2001: Enron files for bankruptcy.

Outcomes:

• Arthur Andersen fell apart.
• Criminal charges for Enron executives.
• 2002 Sarbanes-Oxley Act to bolster transparency and corporate accountability.

Though it did not directly affect CHF/EUR, the Enron scandal fueled greater caution in financial markets worldwide.

The dot-com bubble was a speculative frenzy from 1997 to 2000, mainly involving U.S. internet-related tech companies. It peaked on March 10, 2000, when the Nasdaq hit 5,048.62 points. Starting on March 11, however, the market began to slide.

In March 2000, financial statements from many dot-coms revealed a lack of profits and no clear path to profitability, eroding investor confidence and prompting heavy sell-offs. This spurred a significant market correction.

During March 2000, the CHF/EUR exchange rate did not experience major shifts directly attributed to the bubble. Yet, the Swiss franc is often viewed as a stable currency, potentially attracting interest in times of financial uncertainty.

The euro’s adoption began gradually on January 1, 1999, when eleven EU member states adopted it as a virtual accounting currency for financial transactions. Initially, the euro did not exist in physical form; Greece joined on January 1, 2001, bringing the total to twelve. On January 1, 2002, the euro entered official circulation via coins and banknotes in these twelve countries. Over time, additional nations followed suit—Slovenia, Malta, Cyprus, Slovakia, Estonia, Latvia, Lithuania, and most recently Croatia in 2023. By 2022, nineteen EU states had adopted the euro as their official currency.

Between 1999 and 2002, despite a significant impact on European financial markets, the euro’s introduction did not specifically affect the CHF/EUR exchange rate through targeted monetary policies. Overall, the CHF/EUR rate remained relatively stable without direct interventions by the Swiss National Bank (SNB) during that period.