The Swiss franc dropped today as the market sentiment was not favorable to currencies considered to be a safe haven.
Analysts explained the drop of the Swissie by the risk-on market mentality as traders were hoarding assets such as stocks and commodities. Meanwhile, the UBS consumption indicator printed 1.38 in June, up from the downwardly revised May figure of 1.32. Despite the increase, the report said that the indicator is “pointing to subdued growth in Swiss private consumption in recent months” and added:
Relatively weak growth in employment was much to blame for the lackluster number, however this was offset somewhat by robust new car registrations data and overnight hotel stays by Swiss nationals.
USD/CHF rallied from 0.9524 to 0.9583 as of 16:47 GMT today. EUR/CHF advanced from 1.1090 to 1.1142, and its daily high of 1.1173 was the highest since February 2016.
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