The Swiss franc gained today as many traders remained unconvinced about ability of the European leaders to find a cure for the region’s failing economy, driving Forex market participants to the perceived safety of the Swiss currency.
The speculation about the potential increase of the European Union bailout fund was met with enthusiasm among investors, but many traders didn’t believed the politicians will reach an agreement to boost the fund. What’s more, even the increase of the rescue facility in now way can guarantee the end to the Europe’s woes. The franc is less inclined to profit from the problems in Europe after the Swiss central bank pegged the currency to the euro. The Swissie still hasn’t reached the ceiling yet, though, and therefore is able to rally for a short time.
USD/CHF fell from 0.9027 to 0.8996 today as of 15:54 GMT. EUR/CHF dropped from 1.2420 to 1.2306, while the threshold set by Switzerland’s central bank is 1.20.
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