The Swiss Franc is trading close to a five-week high against the US Dollar as the currency tracks the Euro higher.
The Euro is riding higher following the release of better-than-expected business climate data out of Germany and signs of improvement in the French and Spanish economies. The US Dollar meanwhile has spent most of the week trading lower due to investors trimming their Dollar positions ahead of next week’s Federal Reserve Policy meeting.
Speculation has increased that the Fed will not begin the tapering of its monetary easing programme in the near future, a belief that has seen commodity based and emerging currencies strengthen.
Despite the German data, the rise in the euro and the franc – which has been capped against the single currency for almost two years – was limited by the European Central Bank’s pledge to maintain its dovish monetary policy for some time yet.
Prices indicate that bets on when the ECB will begin hiking interest rates have been pushed back by around three months since it said in early July it would keep interest rates at record lows for an extended period.
Swiss news has been largely absent from the fundamental calendar this week and next week isn’t looking much better, with just the June edition of the KOF Leading Indicator due for release, which aims to project future trends overall economic activity and retail sales.
Current Swiss Franc (CHF) Exchange Rates
Swiss Franc/ Euro Exchange Rate is currently in the region of: 0.8105
Swiss Franc/US Dollar Exchange Rate is currently in the region of: 1.0771
Swiss Franc/ Pound Sterling Exchange Rate is currently in the region of: 0.6992
Swiss Franc/ Australian Dollar Exchange Rate is currently in the region of: 1.1604
(Correct as of 15:20 pm GMT)
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