The Swiss Franc has weakened against the Pound and made losses against the majority of its most traded peers after data showed that Switzerland’s manufacturing sector expanded for a fifth month in a row in August, despite the expansion the figure disappointed economists.
According to the Swiss purchasing manager’s index compiled by the Swiss SVME purchasing managers association and Credit Suisse, output in the country fell to 54.6 in August, down from the 57.4 recorded in the previous month. Economists had been calling for a figure of 55.9. A reading above 50 indicates expansion whilst a figure below indicates a contraction.
“The PMI and most of the sub-indices came in close to their average historical levels in August, which is a sign of a certain degree of normalisation,” said Credit Suisse.
Another factor weighing on the Franc was the easing of demand for safe haven currencies in the wake of the announcement by US President Barrack Obama that any decision regarding military action against Syria will be decided by a vote in a congress. His comments have reduced the chances of an attack taking place this week. In France meanwhile there is growing pressure on President Francois Hollande to follow the example of the UK and US by holding a parliamentary vote to decide whether action should be taken.
The French government has said it will hand over its own evidence to French lawmakers on Monday, linking the Syrian regime to the attack.
Tomorrow sees the release of the latest GDP data for Switzerland and is expected to show that the country’s economy expanded by 0.55% in the second quarter, on a year by year basis it is forecast to rise by 1.31%.
Current Swiss Franc (CHF) Exchange Rates
Swiss Franc/ Euro Exchange Rate is currently in the region of: 0.8114
Swiss Franc/US Dollar Exchange Rate is currently in the region of: 1.0723
Swiss Franc/ Pound Sterling Exchange Rate is currently in the region of: 0.6894
Swiss Franc/ Australian Dollar Exchange Rate is currently in the region of: 1.1943
(Correct as of 12:00 pm GMT)
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