The Swiss franc reached the highest level since February 29, 2012 against the US dollar today as US politicians were unable to agree on the budget. The currency retreated as of now and continues to weaken.
Amid the US government shutdown and the political turmoil in Italy, it is not a surprise that traders run to safe currencies, including the Swissie. The reversal of the rally was somewhat unexpected, but can be explained as a correction after the currency’s strong move upward that has happened recently. Whatever the case, the franc is still far away from the central bank’s ceiling of 1.20 per euro, therefore the currency has room for further gains.
USD/CHF rose from 0.9046 to 0.9071 as of 16:14 GMT today after falling earlier to 0.8991. EUR/CHF jumped from 1.2235 to 1.2264 following the previous drop to 1.2215.
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