The Swiss Franc (CHF) saw an uptick on Monday as investors sought safe-haven assets amidst rising risk aversion. The Swiss Franc, renowned for its stability, is a preferred choice in times of market uncertainty.
The move towards safety was triggered by the European Union’s (EU) announcement of investigations into major tech giants like Apple, Google, and Meta for potential antitrust violations, as reported by ABC News. This news added to the cautious sentiment in the markets.
Furthermore, tensions escalated as Russia reportedly launched hypersonic missiles at Ukraine’s capital, Kyiv. The attacks caused damage to buildings and resulted in injuries to civilians, according to the Independent.
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Against this backdrop, major European indices such as the DAX, CAC40, and FTSE 100 dipped by around half a percent at the start of the week. Similarly, US Futures were down by a quarter of a per cent.
The Swiss Franc’s strength is notable as it outperforms its counterparts amid the prevailing risk-off sentiment. The EU’s scrutiny of tech giants under the Digital Markets Act (DMA) has particularly spooked investors, as the Commission suspects these companies of non-compliance with their obligations under the DMA.
In Kyiv, the missile strikes have further exacerbated tensions, highlighting the fragile geopolitical landscape. The Swiss Franc‘s rise underscores its status as a reliable asset in times of global uncertainty, a trend that may persist as long as market volatility remains elevated.