Foreign exchange expert evaluates: This is what the war in Israel means for the Swiss franc

class=”sc-29f61514-0 icZBHN”>

War broke out in the Gaza Strip on Saturday morning. Terrorists of the Hamas organization surprisingly fired rockets at Israel. Since then, a state of emergency has been in effect in Israel and Palestine.

The big question now is how global financial markets will react. So what does the uncertainty in the markets mean for the Swiss Franc?

Location is quiet

If there are major geopolitical tensions, the Swiss franc often appears as a so-called safe haven. However, in the Israeli case this is not yet evident: the franc has appreciated slightly against the euro. However, movements are still at the same level as in June. Evaluating the situation in the foreign exchange market in response to Blick’s question, Thomas Flury (58) says, “The Swiss franc exchange rate does not seem to rise or fall against the euro.” He is a foreign exchange expert at UBS.

So things are still relatively calm in the foreign exchange market. According to Flury, nothing will change that quickly “as long as the conflict is limited to Israel and Palestine.” The situation could change significantly if more countries are included. “Then a new risk assessment is needed,” the expert continues.

If the Swiss franc strengthens significantly, it will be bad news for Swiss exporters. In this case, it will be even more difficult for them to dispose of their goods abroad because importers from abroad will have to pay more for Swiss goods.

The opposite will be the case for Swiss importers as well as for Swiss people shopping abroad. Purchasing power is increasing; therefore they can afford more in euro countries.

Source :Blick