The Swiss franc dropped today, falling for the second consecutive day even as last quarter’s economic growth of Switzerland was above economists’ expectations. The weakness was likely caused by signs that the central bank will maintain the cap on the currency for a long time.
Swiss gross domestic product expanded 0.5 percent in the second quarter of 2013, beating the forecast of 0.3 percent. The report said:
As in the previous quarters, positive contributions to growth came primarily from private consumption.
The data was not particularly helpful to the franc, which remains soft after Swiss policy makers indicated that they are going to keep the currency ceiling, though the Swissie managed to recover against the euro after the earlier drop.
USD/CHF was up from 0.9341 to 0.9360 as of 17:22 GMT today, while its daily high was at 0.9381. EUR/CHF traded near the opening level after climbing from 1.2323 to 1.2340 intraday.
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