The Swiss franc dropped today as demand for safety fell amid the positive market sentiment, while the Swiss fundamental data made investors question the safe status of the currency.
Comments of European Central Bank President Mario Draghi about strong capital inflows into the European region helped to reduce pessimism among Forex traders. Falling yield on Spanish government bonds also added to the positive sentiment. Fundamental reports from Switzerland were not particularly bad, but worse than was anticipated. Retail sales grew 2.9 percent year-on-year in November, compared to the median forecast of 3.3 percent, and the PPI rose 0.1 percent in December, below the prediction of 0.2 percent.
USD/CHF rose from 0.9308 to 0.9347 as of 17:18 GMT today, while its intraday high of 0.9353 was highest since December 11. EUR/CHF advanced from 1.2369 to 1.2473 and its daily maximum of 1.2483 was strongest since May 20, 2011.
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