The Swiss franc weakened for the second trading session as the positive macroeconomic data from Europe boosted stocks and commodities, reducing investors’ need for safety of the franc.
The French Flash Services PMI jumped from 54.2 in July to 56.1 in August. Much smaller increase to 53.3 was expected. The German Flash Manufacturing PMI stayed at 52.0 this month, while it was predicted to fall to 50.9. There were plenty of bad reports as well, but it seems markets paid attention mostly to the positive ones.
Risk appetite is slowly returning to markets and with it the Swissie retreats. Yet the global economy is far from being stable and healthy, meaning that demand for safety can return again and the franc would be attractive. In fact, the Swiss currency hasn’t fell far in the last few sessions despite the rumors about
USD/CHF was at 0.7922 as of close of the previous session, rising from 0.7900, and traded near 0.7940 today as of 1:01 GMT. EUR/CHF traded at about 1.1444 after rising yesterday from 1.1344 to 1.1439. CHF/JPY was at 96.75 today and yesterday it fell from 97.12 to 96.68.
If you have any questions, comments or opinions regarding the Swiss Franc,
feel free to post them using the commentary form below.
