The Swiss Franc climbed to its highest level in two-months against the Euro following the release of data out of the Eurozone which showed that the region’s recovery is stalling and as a report out of Switzerland showed that Industrial production increased.
The Euro fell to a two-month low against the Franc and weakened against the Pound and other peers after GDP data released by the European statistics agency Eurostat, showed that the Eurozone economy expanded by 0.1% quarter-on-quarter in the third quarter, unchanged from its preliminary estimates and in line with market expectations. Year-on-year the economy shrank to a seasonally adjusted 0.4% in the third quarter, a figure which was also in line with forecasts.
The data highlights that any recovery in the single currency region is uneven.
Eurostat also released retail sales figures which showed that in the euro area sales fell to 0.1% year-on-year in October following a 0.3% growth in September. Economists had expected the sales to grow 1.0% annually.
Sales on a month-over-month basis dropped 0.2% in October, weaker than estimates for a 0.1% growth following previous month’s 0.6% drop.
PMI data released by Markit showed some slight improvement in the composite report but services declined from 51.6 to 51.2. Any figure below 50 indicates a contraction whereas above means expansion.
Earlier in the session Swiss industrial production data showed that output in the country climbed by 0.7% in the third quarter, reversing the negative trend seen in the second of -1.1%.
The Franc is likely to push higher against the Euro as the week progresses as investors look ahead to next week’s policy meeting by the Swiss National Bank. The Central Bank is to reaffirm its commitment to the Euro/Swiss peg of 1.20 francs.
Current Swiss Franc (CHF) Exchange Rates
Swiss Franc/ Euro Exchange Rate is currently in the region of: 0.8146
Swiss Franc/US Dollar Exchange Rate is currently in the region of: 1.1034
Swiss Franc/ Pound Sterling Exchange Rate is currently in the region of: 0.6751
Swiss Franc/ Australian Dollar Exchange Rate is currently in the region of: 1.2229
(Correct as of 14:30 pm GMT)
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