{
  "id": 2335312,
  "title": "Swiss Franc: Funding role grows as volatility stays low – ING",
  "url": "https://urgent.news/2026/08/21/swiss-franc-funding-role-grows-as-volatility-stays-low-ing",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-21T07:58:43.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/swiss-franc-funding-role-grows-as-volatility-stays-low-ing-202608210758"
  },
  "original_language": "en",
  "account": "ING analyst Chris Turner reveals that the USD/CHF currency pair experienced a significant drop following the US Treasury's buy-back announcement, primarily due to investors adjusting their positions after the hawkish Fed narrative favored long positions. Despite increased Treasury support being perceived as a risk-positive scenario, volatility remains low, making the carry trade more attractive. The Swiss Franc (CHF) is projected to become the preferred funding currency over the Japanese Yen (JPY), potentially driving EUR/CHF back to the 0.9400 region. Following Wednesday's US Treasury announcement on liquidity support buyback operations, USD/CHF led the dollar lower, similar to events witnessed in April 2025 when policy credibility concerns affected various asset classes, favoring the US dollar and Swiss franc. Analysts believe the sharp sell-off in USD/CHF was a result of position adjustments following the hawkish Fed narrative, expecting low volatility and sustained interest in the carry trade. The Swiss franc is expected to gain prominence as the funding currency, potentially leading to a rebound in EUR/CHF levels. The article highlights the surge in long-term government bond yields across major economies, with the US Treasury announcing a doubling of liquidity support buyback operations for 10-year to 20-year and 20-year to 30-year sectors, effective from September 9 to November 4.",
  "summary": "Chris Turner at ING explains that USD/CHF’s sharp drop after the US Treasury buy-back announcement was mainly position adjustment after a hawkish Fed narrative had favoured longs.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}