Swiss Franc Extends Decline On Suspected SNB Intervention
January 29 2015 - 8:22AM
RTTF2
The Swiss franc continued to trade lower against its major
rivals on Thursday's European deals, amid market rumors of the
Swiss National Bank's intervention in the forex market.
In an interview with the Tages-Anzeiger newspaper on Tuesday,
the Swiss National bank's Vice President Jean-Pierre Danthine told
that he is not comfortable with the currency's current exchange
rate level and is prepared to intervene on foreign exchange
market.
Data earlier this week suggested the central bank might have
been intervening to weaken the franc even after it removed the
cap.
In mid-January, the SNB scrapped its 3-1/2-year old cap on the
franc to the euro as it was forced to intervene increasingly in the
currency markets.
The decision was made on prospects of quantitative easing by the
European Central Bank, which will further affect the Swiss
franc.
The franc slipped to 2-week lows of 0.9239 against the
greenback, 127.55 against the yen and 1.3977 against the pound,
compared to Wednesday's closing values of 0.9045, 129.70 and
1.3693, respectively. If the franc continues slide, it may find
support around 0.93 against the greenback, 1.42 against the pound,
122.00 against the yen.
The franc hit a 2-week low of 1.0446 against the euro, off early
high of 1.0203. At yesterday's close, the pair was worth 1.0209.
The next likely support for the franc is seen around the 1.20
region.
Survey data from the European Commission showed that the
Eurozone economic confidence index climbed to 101.2, the highest
since July, from 100.6 in December. It was forecast to rise to
101.6.
Looking ahead, U.S. pending home sales data for December and
U.S. weekly jobless claims for the week ended January 24 are
scheduled for release shortly.
At 11:30 am ET, European Central Bank Executive Board member
Benoit Coeure will take part in a panel discussion on "The future
of Euro" organized by the Innocenzo Gasparini Institute for
Economic Research and Centre for Applied Research at Bocconi
University in Milan, Italy.
Sterling vs CHF (FX:GBPCHF)
Forex Chart
From Mar 2024 to Apr 2024
Sterling vs CHF (FX:GBPCHF)
Forex Chart
From Apr 2023 to Apr 2024