The Swiss Franc is trading stronger against the Euro and the majority of its most traded peers as investors grow increasingly concerned over political issues in Italy and the United States.
The Swiss Franc/ Euro exchange rate is trading in the region of: 0.8176
The uncertainty surrounding the US debt ceiling and budget disagreements has seen investors turn to the Franc, Japanese Yen and Sterling for safety. The Franc looks set to rise throughout the week as the uncertainty looks set to continue.
The ongoing political wrangling in the US has so far led to an impasse with neither the Democrats nor Republicans backing down. Both sides are refusing to negotiate over the issue of the controversial Obamacare bill. As a result the Franc is trading close to the 7-1/2 month low seen at the end of last week.
The Euro meanwhile fell against the Franc after coming under heavy pressure from the turmoil engulfing the Italian government. The troubles come after allies of Silvio Berlusconi walked out of the fragile coalition led by Enrico Letta. The withdrawal has the potential to force snap elections in the country Adding to the Euro’s woes was the release of data which showed that consumer price inflation in the euro zone rose at the slowest pace since February 2010 in September, rising 1.1%, down from 1.3% in August.
“We are in for a risk-off day as we have a bit of a nasty combination of U.S. and Italian political problems, This is positive for the Yen, Swiss Franc and Sterling. We would not buy the Dollar as a government shutdown would reduce the chances of the Federal Reserve ‘tapering’ its stimulus and that is Dollar negative” said Arne Lohmann Rasmussen, head of FX research at Danske Bank.
Current Swiss Franc (CHF) Exchange Rates
Swiss Franc/ Euro Exchange Rate is currently in the region of: 0.8176
Swiss Franc/US Dollar Exchange Rate is currently in the region of: 1.1038
Swiss Franc/ Pound Sterling Exchange Rate is currently in the region of: 0.6839
Swiss Franc/ Australian Dollar Exchange Rate is currently in the region of: 1.1851
(Correct as of 12:55 pm GMT)
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