The Swiss franc, which is virtually pegged to the euro, did not follow the shared European currency in gains today. The unexpected decline of the Swiss economy spurred speculations that the Swiss National Bank will maintain the ceiling for the franc.
Swiss gross domestic product fell 0.1 percent in the second quarter of 2012 from the first quarter, when it rose 0.5 percent. Analysts predicted 0.2 percent growth. Yesterday, SNB President Thomas Jordan reiterated his pledge to maintain the cap on the Swiss currency at 1.20 francs per euro. The shrinking GDP is likely to bolster Jordan’s determination to keep the peg as a strong currency would hurt already stalling economy.
USD/CHF rose from 0.9537 to 0.9551 as of 13:53 GMT today.
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