In the aftermath of the publication of Federal Reserve meeting minutes the US Dollar tumbled across the board. Despite improved risk sentiment driving investment away from safe-haven assets, the Swiss Franc has managed to advance against a flagging ‘Greenback’ (USD).
The US Dollar to Swiss Franc exchange rate is currently trending in the region of 0.9497.
During the build up to the release of the Fed minutes the US Dollar was holding the title of world-beater. Even concerns regarding overvaluation couldn’t hinder the US Dollar’s bullishness amid trader bets of a rate hike occurring in the near-future.
Wednesday’s US data was mostly positive. In particular Mortgage Applications showed impressive growth of 3.8% having contracted by -0.2% previously.
Swiss data was also relatively affirmatory. The nation’s Unemployment Rate equalled the previous figure of 3.0% and the seasonally adjusted jobless score also met with the market consensus of 3.2%.
The US Dollar to Swiss Franc exchange rate has fallen to a low today of 0.9472.
The publication of the Federal Reserve minutes has seen the US Dollar slump against all of its major competitors on Thursday. ‘The minutes appear less hawkish than anticipated, as there was concern about the health of the Eurozone economy and the potential impact of an appreciating Dollar on both US exports and inflation,’ said Ryan Sweet of Moody’s Analytics.
‘Some participants expressed concern that the persistent shortfall of economic growth and inflation in the Euro area could lead to a further appreciation of the Dollar and have adverse effects on the US external sector,’ the minutes said.
Additionally the Swiss Franc has appreciated against the US Dollar after the Swiss National Bank’s Jean-Pierre Danthine gave a speech. Danthine stated that; ‘Negative rates do not make up part of our principle scenario’ and ‘The cap is applied with total determination in the current conditions.’
Forecast for the US Dollar to Swiss Franc Exchange Rate
Given the rapid decline of the US Dollar on Thursday it is unlikely that it will make any significant gains on Friday unless today’s initial jobless claims data surprises to the upside. A softer ‘Buck’ (USD) will be happily received by Federal Reserve policymakers who fear the repercussions of an overvalued US Dollar.
Several speeches by Fed officials could provoke Dollar volatility. However, given the subjects addressed in the Minutes, it is unlikely that the speeches will include anything hawkish enough to overthrow the concerns raised on Thursday.
An absence of Swiss data on Friday is likely to see the Franc continue to trend lower against the majority of its rivals as trader risk sentiment improves.
The US Dollar to Swiss Franc exchange rate has reached a high today of 0.9689.
US Dollar (USD) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
US Dollar,
,Swiss Franc,0.9487,
US Dollar,,Euro,0.7832,
US Dollar,,Pound,0.6167,
US Dollar,,New Zealand Dollar,1.2577,
Swiss Franc,,US Dollar,1.0540,
Euro,,US Dollar,1.2767,
Pound Sterling,,US Dollar,1.6213,
New Zealand Dollar,,US Dollar,0.7951,
[/table]
