Franc Continues to Profit from Troubles in Europe

With all the uncertainty about the outcome of the coming European Union summit Forex traders remembered that the Swiss franc was considered a safe currency and flocked to the Swissie in search of a refuge from the market volatility.
The EU summit will start tomorrow and traders eagerly await its outcome. While the final plan is expected to be introduced on the next meeting, everybody hope at least for some suggestions about the future course of the euro area. One of the important considerations is the European Financial Stability Facility. The changes that may be made to the bailout fund can have a great impact on the state of the European economy, but can the politician find consensus on this matter?
The uncertainty in the outcome of the summit translated into sluggishness of the FX market. In general, the start of the week was market by optimism, but the end of the week changed the sentiment to risk aversion. The franc was able to profit from the uncertainty even as it’s no longer viewed as a safe currency by economists after the Swiss central bank pegged the Swissie to the euro. The franc still remains below the ceiling, so there is a room to rally.
USD/CHF closed at 0.8820 after it opened at 0.8935. EUR/CHF went down from 1.2314 to 1.2258 and GBP/CHF fell from 1.4110 to 1.4070.

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