Swiss Franc Weakens Against Majors
November 27 2015 - 1:34AM
RTTF2
The Swiss franc drifted lower against its major rivals in
European trading on Friday, as the investors speculate that the
Swiss National Bank may respond with further measures to reduce the
appreciation of its domestic currency, if the European Central Bank
eases further.
Markets expect the ECB to ramp up its bond-buying stimulus
programme next month, that may cause further appreciation of the
franc against the euro. Market participants see a strong chance
that the SNB might intervene in the forex market or cut rate
further to keep a lid on the franc's gain.
In an interview with Swiss newspaper, the SNB President Thomas
Jordan indicated that the negative interest rates and willingness
to intervene in the currency market, in times of necessity, are the
two pillars of the bank's monetary policy.
The European markets were trading mixed, amid unimpressive data
from China and rising tensions between Russia and Turkey. However,
data showing that eurozone economic confidence remained unchanged
in November partly reassured investors.
The franc showed mixed trading in the Asian session. While the
franc was slightly lower against the euro, it held steady against
the greenback and the yen. Against the pound, it ticked up.
The franc fell to a weekly low of 1.5526 against the pound,
while touching 1.0327 versus the dollar, its lowest since August
2010. On the downside, the franc is likely to find support around
1.565 against the pound and 1.05 against the greenback.
The franc slipped to a 1-1/2-low of 1.0922 against the euro and
a 10-1/2-month low of 118.73 against the yen, from its previous
highs of 1.0852 and 119.86, respectively. If the franc falls
further, 1.10 and 116.00 are seen as its next support levels
against the euro and the yen, respectively.
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