The Swiss Franc is little moved against the Pound but remains close to a three month low following the currency’s sharp depreciation yesterday following the European Central Bank’s surprise decision to cut interest rates.
The Franc tumbled against its peers alongside the Euro after the ECB shocked investors by cutting interest rates to a new record low level of 0.25%. Economists had been predicting that the Central Bank would refrain from cutting the rate in November despite the release of disappointing inflation data which came in at a four-year low.
Other data out of the Eurozone also weighed on sentiment for the currency which had a knock on negative impact on the Swiss Franc.
Following the news the Franc tanked to its lowest level since May 15th against Sterling and suffered heavy losses against the majority of its peers. The currency also wasn’t helped by news that France had its sovereign credit rating downgraded by credit ratings agency Standards and Poor’s.
Data out of Switzerland did little to offer much support for the Franc. In a report released by the State Secretariat for Economic Affairs the rate of unemployment in the country remained unchanged at 3.2% in October.
Other data released by the Swiss Federal Statistical Office showed that on yearly basis retail sales in the country increased by 1% in September, down from the 2.5% increase recorded in the previous month and below the expected increase of 2.5% forecast by economists.
Attention will now focus on the eagerly awaited US non-farm payrolls data due for release later in the session. If it comes in better-than-forecast then speculation will rise that the Federal Reserve could consider tapering its quantitative easing programme sooner than expected. If that’s the case then the Franc is likely to strengthen against the Pound.
Current Swiss Franc (CHF) Exchange Rates
Swiss Franc/ Euro Exchange Rate is currently in the region of: 0.8134
Swiss Franc/US Dollar Exchange Rate is currently in the region of: 1.0916
Swiss Franc/ Pound Sterling Exchange Rate is currently in the region of: 0.6781
Swiss Franc/ Australian Dollar Exchange Rate is currently in the region of: 1.1535
(Correct as of 12:00 pm GMT)
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