CHF is the second most over-valued major currency after the USD, DBS FX strategist Chang Wei Liang notes.

SNB still has scope to cut rates

“The sharp unwind of carry trades in July had resulted in the CHF strengthening as much as the JPY.”

“Unlike the under-valued JPY, the CHF's overvaluation is now approaching levels seen in Aug 2011, just before the SNB imposed a EUR/CHF price floor to stem extreme appreciation pressures.”

“Concerns over a strong CHF are intensifying amongst Swiss exporters. Unlike 2011, the SNB still has scope today to cut rates to cool CHF demand.”