The Swiss franc retreated today after jumping yesterday on risk aversion, but retained most of its gains. Additionally, the currency advanced versus the yen, against which it fell yesterday.
Forex traders were not in mood to risk and preferred safer assets. Negative data from China and the eurozone added to concerns caused by speculations that the Federal Reserve may tamper its quantitative easing program.
Safe currencies rallied on the pessimistic mood of traders. The yen was rallying, but erased most of its gains on the previous trading session and fell on today’s session. The franc is still in danger as the Swiss National Bank is willing to contain the exchange rate, but the overseas news was playing in favor of the Swiss currency.
USD/CHF was at 0.9705 as of 1:31 GMT today after dropping from 0.9780 to 0.9684 yesterday. EUR/CHF declined from 1.2575 to 1.2525 before trading at 1.2533. CHF/JPY was up from 105.26 to 105.55.
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