Swiss Franc Joins Dollar & Yen in Rally

Risk aversions was the theme of talks during the past trading week. Unsurprisingly, this helped currencies considered to be a safer option, like the Swiss franc, which was the third strongest on the Forex market following the US dollar and the Japanese yen.
The franc rallied even though domestic fundamentals were not supportive to the currency, with the Swiss National Bank continuing to make attempts to weaken the franc. Meanwhile, the dollar continued to get support from interest hike speculations despite very small chances for that happening at the next Fed policy meeting. The yen was also getting aid from monetary policy speculations, specifically from signs of disagreement among policy makers about necessity to add monetary stimulus.
The Great Britain pound, on the other hand, was the weakest currency on the market. It looks like worries about the Brexit are returning. Hints from the Bank of England about incoming additional policy accommodation were damaging the appeal of the sterling as well.
USD/CHF rallied from 0.9746 to 0.9801 after falling to 0.9695 during the week. CHF/JPY was down from 105.17 to 104.16. EUR/CHF closed at 1.0932 after opening at 1.0943. GBP/CHF dropped 1.5% from 1.2921 to 1.2733.

If you have any questions, comments or opinions regarding the Swiss Franc,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *

forty four + = forty eight