Euro, Swiss Franc May Gain on Prospect of Further Rate Rises

1046 GMT – The euro and Swiss franc look set to rise as the European Central Bank and Swiss National Bank are likely to raise interest rates further given the resilience of Europe’s economy and elevated inflation, Societe Generale says. “Higher rates, recovering current account surpluses and tighter money will take euro and Swiss franc higher as it becomes clear that the Federal Reserve will stop hiking long before the ECB or SNB,” SocGen forex strategist Kit Juckes says in a note. “EUR and CHF are a buy against GBP here.” (renae.dyer@wsj.com)

Japanese Yen, Swiss Franc Could Perform Well Due to Safe-Haven Demand

1003 GMT – The Japanese yen and Swiss franc should see further outperformance as a challenging investment environment boosts demand for safe-haven assets, ING says. “U.S. debt ceiling fears are on the rise and U.S.-China tension is showing no signs of easing,” ING analyst Chris Turner says in a note. In this environment, investors will increasingly favor defensive positions in the yen and the franc, he says. USD/JPY falls 0.2% to 133.931 after earlier hitting a one-week low of 133.695, according to FactSet. EUR/CHF trades flat at 0.9796 after reaching a five-week low of 0.9786 earlier.(renae.dyer@wsj.com)