Swiss Franc Posts Gains vs. Euro, Losses vs. Dollar

The Swiss franc strengthened versus the euro on the renewed concerns for the European economy, threatened by the budget deficits of the peripheral economies. The franc fell against the US dollar after the reports showed the consumer confidence in Switzerland decreased.

The yield on the Irish 10-year bond compared to the German bunds increased to the record 5.54 percentage points. The spread between the Portuguese and the German bonds rose 13 basis points to the record 4.52 percent. It looks like the European debt troubles returned to the focus of attention after the quantitative easing in the US, which was the main theme of the news earlier, occurred.

The consumer confidence index, according to the State Secretariat for Economic Affairs, dropped to 7 points in October. It was 16 in the month earlier and was expected to rise to 17.

USD/CHF rose from 0.9680 to 0.9699 as of 6:36 GMT. EUR/CHF traded near 1.3366 after it dropped yesterday from 1.3446 to 1.3331.

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