Swiss Franc Surges Amid Bond Market Carnage

The Swiss franc surged against major currencies on Thursday as global bond markets continued to suffer from high volatility and rising interest rates.

US Treasuries were at the centre of the turmoil, with yields surging across the curve in response to persistent inflation, increasing energy prices, and a prolonged period of higher interest rates.

The strong CHF led to USD/CHF reversing from upper channel resistance, suggesting that the pair may now be due for a deeper pullback. This is as broad CHF strength and signs of a carry-trade unwind have emerged in the market.