Swiss Franc Lower on Expected Job Cuts

Swiss franc is lower today in Forex trading, dropping as leaders warn that more job cuts are likely on the way in the country. Swiss companies expect to see weaker sales going forward (an outgrowth of the recently strong franc, which puts Swiss companies at an export disadvantage), and the news means that job cuts are likely on the way. Additionally, Swiss financial leaders reiterated their commitment to a weaker franc.

Earlier this year, the Swiss National Bank instituted a cap on the franc, pegging it to the euro. On December 15, 2011 Philipp Hildebrand announced that the cap remained the same (although some wanted to see it force a weaker franc against the euro).
Even with the peg remaining unchanged, though, the Swiss have continued to express their desire to keep the franc weak. The strong talk most recently has put Forex traders on alert. The SNB has already proved it is not averse to intervening in the currency markets, and Forex traders are responding to renewed commitment to a weaker franc by selling it off a little.
However, there aren’t many big movements today; as with many other currencies today the trading is low as we move into the holidays for those in the United States and much of Europe.
At 16:05 GMT, EUR/CHF is a little bit higher, at 1.2232, up slightly from the open at 1.2217. USD/CHF is also up, moving to 0.9381 from the open at 0.9360. GBP/CHF is down to 1.4663 from the open at 1.4676.

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