Optimism for the growth of the global economy continues to reduce the demand for the safer assets, driving the Swiss franc down, even though the Swiss economy supports appeal of the currency.
Peter Rosenstreich, the chief market analyst at ACM Advanced Currency Markets, explained:
The Swiss franc is in an awkward position with risk easing. The risk premium thatâs built into the Swiss franc is going to be unwound unless we encounter a rash of risk aversion.
The situation in Egypt apparently doesn’t have the expected adverse influence on the markets, thus the concerns about the social unrest in the country gradually recede. The Standard & Poorâs 500 Index gained 0.2 percent and the MSCI World Index advanced 0.5 percent.
Switzerland’s unemployment rate in January was at 3.5 percent. The December figure was revised from 3.6 percent to the same level. Previously such unemployment level was seen as long ago as June 2009.
USD/CHF advanced from 0.9553 to 0.9607 today as of 19:15 GMT after previously it dropped as low as 0.9523. EUR/CHF jumped from 1.2977 to 1.3108.
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