The Swiss franc was the strongest currency on the Forex market today, followed by the Japanese yen. Risk aversion was ruling markets as the coronavirus, which originated in China, continued to spread. Fears resulted in a rising demand for safe currencies, like the Swissie and the yen. Domestic economic data provided additional support for the currency of Switzerland.
The KOF Economic Barometer rose to 100.1 in January from 96.2 in December. The actual figure was far above the median forecast of 97.0. The report commented on the result:
The KOF Economic Barometer rises in January. After already taking a step upwards in December, it is now back to its long-âterm average value. The barometer did not reach this level throughout 2019. The Swiss economy can free itself somewhat from its shackles.
Meanwhile, the virus continued to spread across the world, spooking investors and making economists question how bad its impact on the world’s economy will be. The number of confirmed cases climbed to 7711, while the death toll rose to 170 from 132. The World Health Organization gathers today to discuss whether to announce a global health emergency. Analysts speculated that central banks may start monetary easing to support economies of their countries.
USD/CHF dropped from 0.9729 to 0.9709 as of 10:11 GMT today. EUR/CHF declined from 1.0715 to 1.0698. CHF/JPY gained from 112.00 to 112.19, bouncing from the daily low of 111.87.
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