The euro has finally made its way back to the infamous 1.20 level against the Swiss Franc. EUR/CHF traded as high as 1.1995 on Thursday morning but was unable to break the 1.20 resistance to the upside as traders wonder whether the market is ready to accept finally a weaker Swiss franc.

The Swiss currency retains a negative momentum since early March: on a trade-weighted basis, the franc fell more than 3.75% to its lowest level since January 15, 2015. Over the same period, the Swissie lost ground against all its G10: 4% against the euro, 2.55% against the greenback and 2% against the Japanese yen. What could explain such a move, especially against the backdrop of rising geopolitical tensions?