Analysis-Swiss franc shines as investors scramble for safe assets
The potential for the Israel-Hamas conflict to worsen and poor corporate earnings have sent investors scrambling for safety with few havens left, as high-for-longer U.S. rate expectations batter government bonds and the yen. Enter the Swiss franc, a longstanding safe haven asset thatjust hit its highest level against the euro since 2015, standing tall as its traditional rivals lose appeal. "Markets are caught between a rock and a hard place, with a surge in risk aversion where bonds provide no protection," said Florian Ielpo, head of macro at Lombard Odier Investment Managers in Geneva.
