Franc Advances As U.S. Includes Switzerland On Watchlist
January 14 2020 - 2:59AM
RTTF2
The Swiss franc advanced against its major counterparts in
European deals on Tuesday, as the U.S. treasury included
Switzerland on a currency manipulator watchlist.
Even as borrowing costs for the Swiss government remained among
the lowest in the world, fiscal policy was underutilized, even
within the constraints of Switzerland's existing fiscal rules, the
Treasury report said.
Swiss government responded that they have not manipulated the
franc to gain "an unjustified competitive advantage."
Investors welcomed signs of a thawing in relations between the
United States and China after the U.S. Treasury Department dropped
China's designation as a currency manipulator and China pledged to
buy nearly an additional $80 billion of U.S. manufactured goods
over the next two years.
The phase one U.S.-China trade deal is due to be signed at the
White House on Wednesday. U.S. Trade Representative Robert
Lighthizer told Fox Business that the Chinese translation of the
deal's text was almost done.
The franc advanced to 113.74 against the yen, its strongest
since December 2018. The franc is likely to locate resistance
around the 115.00 level.
Data from the Ministry of Finance showed that Japan posted a
current account surplus of 1,436.8 billion yen in November- up 75
percent on year.
That exceeded expectations for a surplus of 1,424.8 billion yen
following the 1,816.8 billion yen surplus in October.
The franc climbed to a 6-day high of 0.9669 against the
greenback from yesterday's closing value of 0.9706. The franc is
seen finding resistance around the 0.95 level.
The Swiss currency strengthened to 1.0761 against the euro, a
level unseen since April 2017. The franc may locate resistance
around the 1.06 level.
The franc approached a 3-month high of 1.2557 against the pound
from Monday's closing quote of 1.2608. The franc is poised to
challenge resistance around the 1.24 level.
Looking ahead, U.S. consumer price index for December is due out
in the the New York session.
At 9:00 am ET, Federal Reserve Bank of New York President John
Williams will speak about the culture in financial services at a
workshop hosted by the London School of Economics.
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