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The Bernanke speech signalled the world that the US economy as well as the global economy might be in a better state than many expected. This had an immediate effect on the Swiss franc, which further depreciated. The Franc is still far away from purchasing power parity with the Euro, which is approx. EUR/Swiss franc = 1.35. As the Swiss economy is cooling down, the Swiss National Bank is expanding money supply and local Swiss banks might charge customers for holding Swiss franc deposits, making new investments into the Swiss franc for speculative reasons might be not a very intelligent idea. People holding Swiss franc should now definitely diversify into other currencies, such as the Euro.
The Swiss franc is expected to weaken further.
As Switzerland is highly interconnected with the Eurozone, we expect that the Swiss franc will sooner or later match purchasing power parity with the Euro. However, it will definitely not be used as toilet paper as some alarmists want to see it:
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