The Swiss Franc has been falling lately on signs of the Swiss central bank intervening to stop it rising further. This outweighed concerns about the spread of a new coronavirus that have driven investors to safe-haven assets such as the Franc this week. There is very little going on in Swiss broader markets and signals the central bank's discomfort with currency at current levels according to Commerzbank. The Swiss bank is trying to boost inflation in a highly exported economy. Data showed an increase in the amount of cash that domestic commercial banks hold with the Swiss National Bank.

Recently the safe-haven Yen and Swiss franc were soft against the U.S. Dollar for four straight sessions recently. Investors' tolerance for risk increased encouraged by the Chinese government's efforts to contain the latest coronavirus and limit the economic fallout. Slowing German industrial orders suggested the eruo zone economy would remain sluggish in the opening months of 2020. Conbtracts foir German goods fell 2.1% in December from November, the biggest drop since the previous February. A Reuters poll had forecast a 0.6% rise.

The U.S. economy is still in a very strong position compared to other markets. American unemployment figures continue to hit new lows. Productivity in the U.S. increased at a 1.4% annualized rate in the final quarter of 2019.

Until recently the coronavirus had been a factor in the Swiss Franc's appreciation.

Recent dips in the Swiss Franc are ascribed to a lack of liquidity. That makes for jerkier price movements. Use of algorithmic trading added to fears over flash crashes.

The Swiss Franc is widely viewed as a financial refuge due to the stability of the Swiss government and financial system. However, buying interest causes the franc to soar and makes Swiss exports less competitive, hurting the Swiss economy.

Switzerland's consumer price index and unemployment rate is due shortly for release as of this writing, and is expected to further propell the franc ahead of the U.S. Dollar.

"Seekiing Alpha" is stating that we should expect further upside in the CHF/USD currency pair from here. It believes the Swiss bank is not taking sufficient action to stem the rise. It believes the coronavirus is very significant in weakening equity markets and placing safe-haven currencies in vogue. The World Health Organization has chosen not to declare the virus as a global pandemic. However, such is a distinct possibility.

The Swiss National Bank has indicated an intention to end negative interest rates "as soon as we are able." However, it continues also to allude to the view that negative interest rates are necessary. Since the SNB doesn't seem to be taking sufficient action to counter a strong franc, and may fear the U.S. may label Switzerland a currency manipulator, there has been pause on lowering rates any more. The U.S. Treasury has Switzerland back on the FX rigging monitoring list. Swiss exports reached an all-tiomne high of 312 billion Swiss francs last year, even in spite of the U.S.-China trade war.

Since inflation rates continue to remain quite low in Switzerland in spite of negative interest rates, the SNB could increasingly take the view that negative interest rates are not aiding in reaching inflation targets. A shift in sentiment there could boost the franc significantly.

Private bank J. Safra Sarasin in Switzerland foirecasts the franc to extend higher against the Euroi and the U.S. Dollar. They say the franc is seen as the ultimate safe haven against the coronavirus scare, but is becoming increasingly "pricey." Julius Baer investment bank also upgraded their Swiss Franc forecasts citing economic resilience.

However, Capital Economics sees the Swiss Franc strength as forcing the SNB to slash interest rates further to -1.0%.

The Swiss Franc has knocked the USD off its perch as the best performing major currency.