In spite of growing recessionary fears over the growing global trade war and Brexit, the Swiss franc – traditionally a safe-haven currency – has been descending against the greenback.
Source: investing.com
This is particularly surprising given the Federal Reserve’s recent decision to cut rates for the second time this year in September. Nevertheless, the dollar has continued to maintain its strength and the Swiss franc has been edging lower as a result.
What is driving the depreciation in the Swiss franc, and is there a case to be made for a potential rebound?
Recently, the