The Swiss franc was one of the strongest currencies today, rising against almost all other most-traded rivals. The only exception was the Great Britain pound, which managed to hold its ground versus the franc. Even very negative domestic data did not prevent the currency of Switzerland from rising.
Switzerland Federal Statistical Office reported that seasonally adjusted retail sales collapsed by 5.6% in March, year-on-year. Economists were expecting a noticeably smaller decrease of 3.6%. Month-on-month, the indicator tumbled by 6.2%.
The KOF Economic Barometer crashed from 91.7 in March to 63.5 in April, matching market expectations. The figure was just slightly above the levels registered during the 2009 financial crisis. Furthermore, the drop was the steepest on the record, more than twice as big as any other previous very strong decline.
The current dire economic situation across the world makes the Swiss franc attractive to investors in its role as a safe haven. While hopes of an end of the lockdown period and the subsequent recovery of the global economy can reduce demand for the Swissie, the currency will likely retain its appeal for a while unless a breakthrough in the treatment of the COVID-19 disease is achieved.
USD/CHF tumbled from 0.9732 to 0.9655 as of 15:15 GMT today. EUR/CHF declined from 1.0583 to 1.0569. At the same time, GBP/CHF edged up from 1.2132 to 1.2176.
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