Franc Drops Despite Positive Swiss Retail Sales

The Swiss franc was among losers today even though domestic macroeconomic data was very good and should have provided support for the currency, which trades very similar to the euro due to the Swiss National Bank effective peg of the franc to the eurozone currency.
Swiss retail sales (seasonally adjusted) expanded 4.2 percent in November from a year ago after rising 1.6 percent in October. Experts counted on an increase by 2.3 percent. The report was good, but nevertheless the franc dropped against other major currencies, including the dollar and the euro.
USD/CHF rose from 0.9023 0.9070 and EUR/CHF advanced from 1.2342 to 1.2354 as of 10:58 GMT today.

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