The good reports from Europe, especially Germany and the general optimism about the global economy reduced demand for safer currencies, including the Swiss franc, which retreated versus the Euro. The franc rose against the US dollar.
The Eurozone Purchasing Managers’ Index increased from 56.9 to 57.3 in January. The number of jobless people in Germany declined by 13,000, reaching the lowest level in 18 years. The jobless rate in Germany slid to 7.4 percent in January, compared with 7.5 percent in December, while it was expected to remain unchanged. The forecasts promise that the unemployment rate will go down to 7 percent this year, while Germany’s gross domestic product will expand 3.5 percent, the fastest growth in about two decades.
The positive outlook for the economic growth reduces demand for the franc as a safe haven. Moreover, the optimism spurned the speculation that the European Central Bank will increase the interest rates before the Swiss National Bank, further strengthening the euro versus the franc.
EUR/CHF rose from 1.2932 to 1.2955 as of 03:14 GMT today. USD/CHF traded near 0.9357 after it dropped yesterday from 0.9439 to 0.9353.
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