The Swiss Franc has weakened against the Pound and dropped against the Euro after economic data showed that consumer confidence in Switzerland declined by a larger margin than economists were expecting. An expected fall in unemployment was not enough to prevent the currency’s decline.
Tuesday has also seen the release of the latest SNB foreign currency reserves. The figure narrowed from CHF438.3 Billion to CHF433.6 Billion, more than was expected (435.0 Billion); the Swiss Franc became vulnerable in the European morning and gave in against its counterparts.
With 0.9370 holding the downside, the USD/CHF retraced its losses and headed towards its May highs as the market still tries to regain 0.9400.
Switzerland’s unemployment rate improved to 3.1% from the 3.2% recorded in March.
Investors are thought to be very anxious to see the update of German factory orders indicator, as market consensus suggests a monthly contraction by -0.5% in March and a year-on-year drop by -2.9%. The French industrial output not only contracted as predicted, but fell by -0.9% instead of the market consensus of -0.3%.
For now, investors await the German data and keep the EUR/USD holding above 1.3070 and below 1.3090. If the German data comes in worse than expected we can expect the Franc to drop further as further weakness in the Eurozone will have a negative impact on Swiss exports.
Current Swiss Franc (CHF) Exchange Rates
Swiss Franc/ Euro Exchange Rate is currently in the region of: 0.8139
Swiss Franc/US Dollar Exchange Rate is currently in the region of: 1.0645
Swiss Franc/ Pound Sterling Exchange Rate is currently in the region of: 0.6850
Swiss Franc/ Australian Dollar Exchange Rate is currently in the region of: 1.0444
(Correct as of 10:15 am GMT)
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