The Swiss Franc has weakened against the US Dollar and the Pound in subdued trading as economists take a wait-and-see approach to this week’s US economic data releases.
The uncertainty over whether the US Federal Reserve will choose to begin tapering its monetary easing programme has once again raised its head, making the markets nervous ahead of Tuesdays US retail sales report. If the data comes in better-than forecast then we can expect the Dollar to strengthen further as speculation will mount over a Fed cut back.
Last week saw the US Dollar come under pressure against the majority of its most traded peers after last week’s US jobs report came in below expectations and that it added fewer jobs in July. The disappointing data led to investors reassessing their positions regarding a possible tapering of the Feds asset purchasing programme.
Meanwhile in Switzerland, data released on Monday by the Swiss Federal Statistics Bureau showed that retail sales in the country rose to a seasonally adjusted annual rate of 2.3%, up from the 1.5% recorded in the previous month. That figure was revised down from 1.8%. The figure beat economist forecasts for the figure to remain at the 1.8% level.
The next piece of key economic data out of Switzerland is due to be released on Wednesday – the July PPI m/m is forecasted to show growth of 0.4%.
Yesterday, the Swiss National Bank vice president, Jean-Pierre Danthine said that SNB would be enforcing its cap on the Swiss franc for as long as it is needed.
Current Swiss Franc (CHF) Exchange Rates
Swiss Franc/ Euro Exchange Rate is currently in the region of: 0.8121
Swiss Franc/US Dollar Exchange Rate is currently in the region of: 1.0801
Swiss Franc/ Pound Sterling Exchange Rate is currently in the region of: 0.6983
Swiss Franc/ Australian Dollar Exchange Rate is currently in the region of: 1.1801
(Correct as of 12:20 pm GMT)
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