Swiss Franc Gains, Ignoring Adverse Fundamentals

The Swiss franc gained today even though fundamentals did not look particularly supportive for the currency.

Switzerland’s State Secretariat for Economic Affairs released a report about consumer confidence, showing a drop of the index from -14 to -15 in the three months through March. Experts had predicted in increase to -12.

Thomas Jordan, Chairman of the Swiss National Bank, was speaking yesterday, and he reiterated that the exchange rate of the franc remains too high:

Overall, though, the Swiss franc remains significantly overvalued.

The Swissie did not pay attention to the warning, rising today for the seventh consecutive day against the US dollar.

USD/CHF fell from 0.9543 to 0.9490 as of 12:07 GMT today, touching the low of 0.9445 intraday — the weakest rate since August 26. EUR/CHF slid from 1.1006 to 1.0975.

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