The worst-performing G10 currencies this year have been the NOK (-8.1% vs. USD), JPY (-8.0%) and SEK (-4.3%). These currencies are set to remain under pressure while CHF is strong as the SNB is currently intervening, economists at MUFG Bank report.

CHF to continue benefitting from the SNB intervention

The Norges Bank & Riksbank have responded to currency weakness but measures announced so far are unlikely to trigger sustained reversal of weakening trends on their own.

After taking into consideration recent actions undertaken by policymakers in Japan and Scandinavia, we are not convinced yet that they are sufficient to trigger a sustained reversal of the weakening trends for their domestic currencies (JPY, NOK & SEK). 

The CHF is better placed to continue benefitting from the SNB intervention.