According to CoinMeta, the strengthening of the Swiss franc has had a negative impact on carry trades, and it is feared that this could further drive up the exchange rate in the future. A popular trade involving the Swiss franc is facing liquidation, which has further boosted the franc's exchange rate and sparked speculation about to what extent the Swiss Central Bank will tolerate the appreciation of the franc. During times of uncertainty in Europe, the Swiss franc is often seen by investors as a safe-haven asset. In October, affected by intense protests and political turmoil in France, the Swiss franc strengthened. This trend weakened the returns from so-called carry trades, where investors take advantage of Switzerland's low interest rates to invest in currencies with higher interest rates. Last week, the annual cumulative return from selling Swiss francs and buying euros had significantly decreased from 3.4% at the end of September to just 0.1%. According to data from the U.S. Commodity Futures Trading Commission, although the diminishing attractiveness of carry trades has prompted asset management companies to reduce their short positions in the Swiss franc, leveraged funds still hold a large number of net short positions in the franc. If these positions reverse, it could further push up the franc.