The Swiss franc rose to the highest level since March 2008 against the US dollar as the report showed that the consumer confidence in the US dropped, increasing the appeal of the Swiss currency as the safe haven. The franc also surged against the euro before retreating to the opening level.
The consumer confidence retreated in September to 48.5 from 53.2 in August. That’s compared to the median forecast of 52.5. The prospect for more quantitative easing by the Federal Reserve also weakens the dollar and boosts the franc. The euro weakened against the Swiss currency on the concerns for Ireland’s finances.
In Switzerland itself the economic conditions looks much better. The UBS AG Consumption Indicator, which combines the reading of 5 economic indicators including consumer confidence, consumer spending, tourism, new car sales, and retail activity, continued to rise in August, increasing to 1.95 from its July level of 1.88. The decreasing unemployment and the increasing retail sales also signal about the stability of Switzerland’s economy.
USD/CHF dropped from 0.9851 to 0.9758 as of 20:32 GMT today after falling to the intraday low of 0.9738. EUR/CHF fell as low as 1.3165 before retreating to the opening level of 1.3255.
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