Title: CHF/MYR Consolidates Below 14-Week High, Sustaining Weekly Gains: Key Factors and Future Outlook
Source: Originally reported by TradingPedia, article by Veselin Petkov (October 18, 2025)
Link: https://www.tradingpedia.com/2025/10/18/chf-myr-settles-below-14-week-high-posts-weekly-gain/
The Swiss Franc (CHF) to Malaysian Ringgit (MYR) exchange rate pulled back slightly from a 14-week high on Friday, October 18, 2025. Despite the drop, the currency pair still posted a solid gain for the week, fueled primarily by higher demand for safe-haven assets amid global economic headwinds and uncertainty surrounding U.S. monetary policy.
This article provides an expanded overview of the CHF/MYR movement, analyzing contributing macroeconomic factors, technical indicators, central bank policies, and broader geopolitical dynamics influencing current and future trends in the forex market.
Summary of Recent CHF/MYR Movement:
– The CHF/MYR pair reached a high of 5.3840 on Wednesday, marking the strongest level since July 11, 2025.
– By Friday, the pair had retraced slightly and was trading around 5.3665.
– On a weekly basis, the pair gained approximately 0.3%, signaling continued bullish momentum supported by macroeconomic forces and market sentiment.
– This marks the fourth consecutive week of rising price action in the CHF/MYR pair.
Key Drivers Behind CHF/USD Weekly Performance
Safe-Haven Demand for the Swiss Franc:
– The Swiss Franc has benefited from its traditional status as a safe-haven currency during periods of risk aversion.
– Ongoing geopolitical risks and weaker global economic forecasts have pushed investors toward safer assets like CHF and gold.
– Tensions in the Middle East and slower-than-expected recovery in China have intensified market volatility, boosting CHF demand in risk-off trades.
Uncertainty Around U.S. Federal Reserve Policy:
– Mixed economic signals from the United States have caused uncertainty about the Federal Reserve’s interest rate trajectory.
– Despite firm inflation data, signs of a cooling U.S. labor market have led traders to scale back expectations of further rate hikes in 2025.
– As yields on U.S. treasuries became more volatile and the U.S. dollar showed weakness, this indirectly supported the CHF, which is often inversely correlated with risk-on market environments.
Bank of Malaysia Monetary Policy:
– Bank Negara Malaysia (BNM) has maintained an accommodative stance, with its Overnight Policy Rate (OPR) kept steady at 3.00% during its most recent policy meeting in September 2025.
– The central bank’s decision to stay dovish, citing concerns about domestic inflation and the external environment, has placed some pressure on MYR.
– Malaysia’s consumer price index (CPI) increased by 2.1% year-over-year in September, aligning with inflation forecasts but not prompting any immediate tightening measures from BNM.
Global Economic Backdrop:
– The International Monetary Fund (IMF) recently revised global growth estimates down to 2.9% for 2025, citing persistently high inflation in developing nations and sluggish growth in Europe and Asia.
– Malaysia’s export-driven economy continues to feel the impact of global supply chain disruptions and softened demand from major trading partners, especially China, which is experiencing its own property and credit issues.
Technical Analysis of CHF/MYR
Price Trends and Resistance Levels:
– The CHF/MYR rally extended over the course of October, penetrating the 5.3550 resistance area before facing consolidation just below the 14-week peak at 5.3840.
– Key level to monitor: 5.3840 (recent swing high). A confirmed breakout above this resistance zone could open the door toward the 5.4100 psychological mark.
– Immediate support can be found around 5.3450, with
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