The Swiss franc jumped today, suggesting that traders still require a safe haven even as tensions around Cyprus eased somewhat. The rally was rather strong, almost erasing yesterday’s losses versus the US dollar.
Forex traders felt a little less concerned regarding the situation in Cyprus. Yet the franc’s (and the yen’s) rally suggests that not everybody is ready to drop safer assets in favor of riskier ones. Indeed, the future of the European country remains uncertain, not to mention the problems in other indebted economies.
USD/CHF fell from 0.9536 to 0.9481 and EUR/CHF dropped from 1.2188 to 1.2161 as of 18:25 GMT today.
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