The Swiss Franc has fallen against the Pound and tumbled to a six-week low against the US Dollar as the improving picture for the global economy and diminishing chances of a military strike against Syria dampened demand for safe haven assets.
The recent run of positive data releases out of the UK, USA and Europe has added to speculation that the Federal Reserve will choose to scale back its monetary easing policy when the Central gathers for its two day policy meeting on the 17th of September.
The currency is likely to weaken further during the afternoon when the latest US private-sector jobs data will be released. On Friday the latest non-farm payrolls data is published. Strong outcomes for both sets of data are likely to send investors back to the US currency.
Also weighing upon the Franc is the apparent lack of action from the West regarding Syria. US President Barrack Obama has so far been unable to convince other nations to support military strikes against the Assad regime with the UK and Germany both saying that they will not take part.
The Franc is also under pressure against the Euro after data showed euro zone businesses had their best month in over two years in August. Investors are likely to scrutinise comments from European Central Bank following its policy review later on Thursday.
“In light of encouraging economic signs out of the Eurozone there is after all the chance for a slightly more hawkish stance by the ECB and their president Draghi at the forthcoming press conference,” said UBS economist Reto Huenerwadel.
Current Swiss Franc (CHF) Exchange Rates
Swiss Franc/ Euro Exchange Rate is currently in the region of: 0.8067
Swiss Franc/US Dollar Exchange Rate is currently in the region of: 1.0634
Swiss Franc/ Pound Sterling Exchange Rate is currently in the region of: 0.6815
Swiss Franc/ Australian Dollar Exchange Rate is currently in the region of: 1.1643
(Correct as of 12:30 pm GMT)
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