Over the past few days the single currency has been trending higher against risk-sensitive currencies as a result of low oil prices and disparity in the global economic recovery. Yet another unfortunate domestic data publication from the currency bloc’s largest economy, however, has sent the Euro crashing against the majority of its competitors. Meanwhile, the Swiss Franc has gradually strengthened thanks to its safe-haven qualities amid a generally risk-off environment.
The Euro to Swiss Franc exchange rate is currently trending in the region of 1.2081.
A decline in global oil prices has been beneficial to the Euro as crude is one of the largest imports in the currency bloc. ‘Since June the IEA has cut in two their oil demand growth expectation for 2014,’ Olivier Jakob, managing director of Zug, Switzerland-based consultant Petromatrix GmbH, said in a report. OPEC maintaining its current production level ‘would translate into a major stock-build in the first half of 2015 of 2 million barrels a day.’
Since the International Monetary Fund published a report which outlined the slow pace of global economic growth, cautious trading has dominated the currency market. As a safe-haven asset the Swiss Franc has benefitted from the drop in risk-appetite.
The Euro to Swiss Franc exchange rate has dropped to a low today of 1.2073.
On Tuesday the Euro plummeted against the majority of its most traded currency peers after German data printed below expectations. The German ZEW Survey for Economic Sentiment was forecast for a large drop from 6.9 to 0.0, but the actual result contracted further to -3.6.
Additionally, the Eurozone Economic Sentiment Survey, German Current Situation Survey and Eurozone Industrial Production all declined beyond expectations.
A mixed set of Swiss data hasn’t been enough to weaken the Franc. Producer and Import Prices declined on a yearly basis from -1.2% to -1.4%, but the monthly score advanced from -0.2% to -0.1% in September.
Forecast for the Euro to Swiss Franc Exchange Rate
Although there will be several European economic publications on Wednesday, it is unlikely that the single currency will be able to throw off the weight of Tuesday’s publications. The most significant domestic data release will be the EU-Harmonised German Consumer Price Index which is forecast to maintain the previous figure of 0.8%.
Wednesday’s solitary Swiss economic publication has the potential to provoke volatility. The Swiss ZEW Expectations Survey hit -7.7 previously.
The Euro to Swiss Franc exchange rate has reached a high today of 1.2090.
UPDATE
The Euro to Swiss Franc exchange rate is currently trending in the region of 1.2075.
Having declined to a fresh weekly low at the opening of the London session on Wednesday, the Euro to Swiss Franc exchange rate is steadily recovering after German data printed in line with predictions.
The EU-Harmonised German Consumer Confidence met with the median market forecast of 0.8%, falling in line with the initial estimate for September.
Later on Wednesday the Swiss Expectations Survey has the potential to provoke changes for the EUR/CHF exchange rate.
Euro (EUR) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,
,US Dollar,1.2654,
Euro,,Canadian Dollar,1.4211,
Euro,,Pound,0.7941,
Euro,,Australian Dollar,1.4463,
US Dollar,,Euro,0.7900,
Canadian Dollar,,Euro,0.7037,
Pound Sterling,,Euro,1.2592,
Australian Dollar,,Euro,0.6908,
[/table]
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