EUR/CHF hits lowest level since SNB’s 2015 de-pegging as Franc strengthens further

• EUR/CHF drops to its lowest level since 2015 as Franc strength accelerates.
• Global equity selloff amid stretched AI valuations boosts demand for the Franc.
• Eurozone GDP and employment data come in steady but fail to shift sentiment toward the Euro.

The Euro (EUR) extends losses against the Swiss Franc (CHF) on Friday, with EUR/CHF sliding to its lowest level since 2015, when the Swiss National Bank (SNB) abruptly abandoned its minimum exchange-rate floor. At the time of writing, the cross is trading near 0.9188, marking its fifth straight daily decline as bearish momentum intensifies.

Analysts note that the Franc is benefiting from elevated market volatility amid a selloff in global equities on Friday, driven by renewed concerns over stretched AI valuations. Meanwhile, sentiment toward the Swiss economy has also improved following reports that Switzerland and the United States may be nearing an agreement to lower US tariffs on Swiss exports from 39% to around 15%.

The current price level carries added significance for traders because it echoes levels last seen during the 2015 de-pegging episode. On 15 January 2015, the Swiss National Bank abruptly abandoned its long-defended CHF 1.20 per EUR minimum exchange rate, triggering one of the most dramatic currency moves in modern FX history. EUR/CHF collapsed within minutes, with the Franc appreciating by roughly 20-30% against the Euro as liquidity evaporated across the market.

The SNB later explained that the international environment had shifted to a point where maintaining the floor would require “permanent currency interventions of rapidly increasing magnitude,” forcing policymakers to abandon the cap.

The latest strength in the Franc against major peers puts the spotlight on the risk of SNB intervention, should the currency’s rapid appreciation begin to threaten Switzerland’s economic outlook. The country is highly exposed to exports, and a stronger Franc can quickly undermine competitiveness for Swiss firms.

On the Euro side, stable Eurozone data offered little support. Preliminary Eurozone Gross Domestic Product (GDP) grew 0.2% QoQ, in line with the 0.2% forecast and unchanged from the previous 0.2%. On an annual basis, GDP rose 1.4%, slightly above the 1.3% forecast and the prior 1.3%. Employment increased 0.1% QoQ, matching both the forecast and the previous reading.