The Swiss franc fell against the US dollar today as Switzerland’s gross domestic product missed economists’ expectations. Against other most-traded counterparts, the currency was either flat or higher.
Swiss Franc CHF
Central Bank: Swiss National Bank
Public Debt to GDP Ratio, 2015: 34%
Trade Balance, 2015: $55.8 bln.
Inflation, 2015: -1.1%
Anti-inflation hedge reputation
Factors of Weakness
The Swiss National Bank manipulates currency rate
Negative interest rates
The Swiss franc is the currency that is officially used in Switzerland and Liechtenstein, while also used in some other regions. The franc was introduced in 1850 as a currency used in the whole Switzerland, replacing different currencies that were used in different parts of the country (some of them were also called “franc”). The franc is considered a safe currency because of the stability of the Swiss economy and the near-zero inflation of the currency. Previously, the law that demanded that 40 percent of printed money should be supported by gold also supported the view on the franc as a safe currency, but that requirement was terminated in 2000.
Swiss Franc News Archive
The Swiss franc gained on the US dollar during the current trading session. The Swissie fell against the euro, but its daily high was near the highest level since the Brexit announcement.
The Swiss franc was mixed today, rising against the Great Britain pound, falling versus the euro, and staying mostly flat against the US dollar (though the Swiss currency has moved lower versus the greenback just now). The Swissie, as well as most other currencies, did not move far due to slow trading ahead of the holiday.
The Swiss franc was generally soft today (though not against the euro) after the Swiss National Bank kept interest rates in the negative territory and reiterated that it will continue to intervene on the currency markets to weaken the Swissie.
The Swiss franc gained against most of its major rivals today after the Producer Price Index demonstrated an unexpected increase and economic sentiment for Switzerland improved.
The Swiss franc fell today as policy makers of the Swiss National Bank were defending the current negative interest rates and signaled that monetary easing has not yet reached its limit.
The Swiss franc was soft today despite the risk-negative sentiment that should have supported the currency. Yet the worse-than-expected inflation data did not allow the currency to rally.
The Swiss franc traded higher against its most-traded rivals during Tuesday’s trading ahead of Wednesday’s monetary policy announcement from the Federal Reserve.
Risk aversions was the theme of talks during the past trading week. Unsurprisingly, this helped currencies considered to be a safer option, like the Swiss franc, which was the third strongest on the Forex market following the US dollar and the Japanese yen.
The Swiss franc gained on some of its most-trade counterparts, including the US dollar, the euro, and the Great Britain pound, following today’s monetary policy meeting of the Swiss National Bank.