Swiss Franc Declines On Risk Appetite
30 July 2015 - 5:59PM
RTTF2
The Swiss franc weakened against its major rivals in European
morning deals on Thursday, as European stocks rose amid corporate
earning results and M&A activities, sapping demand for the
safe-haven assets.
Investors welcomed the Fed statement as it gave no hints that a
September rate hike is coming. The Fed struck a positive tone about
the world's largest economy, while sending no clear signal on when
a long-awaited rate rise might come.
The focus now shifts to the two monthly jobs reports scheduled
to be released before the next Fed meeting in September, with the
monthly employment report for July slated for release on August
7.
In economic front, survey results from the KOF Swiss Economic
Institute showed that a measure of future economic activity in the
swiss economy improved more-than-expected in June to reach its
highest level in almost one year.
The KOF Economic Barometer increased by 10 points to 99.8 in
July from 89.8 in June, which was revised up from 89.7. Economists
had expected the index to rise to 90.4.
The currency has been falling against its major rivals, except
the euro, in the Asian session.
In European deals, the Swiss franc fell to nearly a 5-month low
of 1.5150 against the pound and more than a 3-month low of 0.9711
against the greenback, from early highs of 1.5080 and 0.9667,
respectively. The franc ended yesterday's trading at 1.5092 versus
the pound and 0.9667 against the greenback. The franc is seen
finding support around 1.55 against the pound and 0.98 against the
greenback.
The franc pared gains to 127.96 against the yen, from an early
high of 128.19. The franc is heading to violate an early near
3-week low of 127.80. Continuation of the franc's downtrend may see
it finding support around the 126.00 mark.
The Swiss currency edged down to 1.0636 against the euro, after
having advanced to 1.0612 at 2:30 am ET. The next possible downside
target for the franc may be located around the 1.075 level.
Looking ahead, German unemployment rate and Eurozone economic
confidence index, all for July, are due to be released shortly.
In the New York session, preliminary German CPI for July,
advance second quarter U.S. GDP data and U.S. jobless claims for
the week ended July 25, are slated for release.
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