CHF/NOK pulls back from one-week peak, set for weekly loss

The CHF/NOK currency pair edged lower on Friday, paring gains from the prior trading day, as fading global trade tensions weighed on demand for safe-haven currencies such as the Swiss Franc.

Yesterday the exotic Forex pair surged more than 1% after the release of the latest GDP growth data out of both Switzerland and Norway.

The Norwegian economy contracted 0.1% quarter-on-quarter in Q1 of 2025, after a revised down 0.9% decline in the preceding quarter.

The GDP contraction was primarily due to continued decline in petroleum activities and ocean transport as well as a steep drop in fixed investment.

Norway’s mainland GDP, which does not include the petroleum-based offshore segment, grew 1% quarter-on-quarter in Q1 of 2025, while exceeding market consensus of 0.6% and rebounding from a 0.4% drop in the prior quarter.

It has marked the strongest growth rate since the second quarter of 2022, supported by high electricity output due to unusually full water reservoirs.

At the same time, Switzerland’s economy grew 0.7% quarter-on-quarter in Q1 of 2025, a preliminary estimate showed, following a revised up 0.5% growth in Q4 of 2024.

It has been the strongest rate of economic expansion since the first quarter of 2023, mostly underpinned by robust activity in the services sector.

Meanwhile, the Swiss government has been working on strengthening its trade ties with the US in an effort to avoid potential tariffs. According to Finance Minister Karin Keller-Sutter, recent talks with Fed Secretary Scott Bessent were “constructive” and there is potential for a bilateral trade agreement similar to the one established between the US and the UK.

The CHF/NOK currency pair was last losing 0.27% on the day to trade at 12.4296.

The Forex pair has pulled back from a one-week high of 12.4973. It has lost 0.38% so far this week.