Swiss Franc Drops On Trade Optimism
November 15 2019 - 1:23AM
RTTF2
The Swiss franc depreciated against its major counterparts in
the Asian session on Friday, as positive comments from White House
economic adviser Larry Kudlow renewed hopes for a phase one deal
between the U.S. and China.
Kudlow suggested an imminent breakthrough in trade talks, saying
that both countries are getting close to an interim deal.
Kudlow's comments boosted investor sentiment, triggering a fall
in the safe-haven franc.
China's commerce ministry said that the two countries are
holding "in-depth" discussions on the 'phase one' trade deal, but
canceling tariffs is an important condition for reaching an
agreement. Beijing said that it would lift a nearly five-year ban
on imports of U.S. poultry meat, a move that could lead to more
than $1 billion in annual shipments to China.
The currency has been trading lower against its major
counterparts in the previous session, except the yen.
Reversing from its early high of 109.84 against the yen, the
franc edged down to 109.62. The next possible support for the franc
is seen around the 106.00 level.
Final data from the Ministry of Economy, Trade and Industry
showed that Japan's industrial production grew more than initially
estimated in September.
Industrial production rose 1.7 percent month-on-month in
September.
The franc weakened to a 2-day low of 0.9911 against the
greenback, from a high of 0.9878 seen at 5:00 pm ET. If the franc
slides further, it may find support around the 1.02 level.
The Swiss currency slipped to 2-day lows of 1.0919 against the
euro and 1.2760 against the pound, coming off from its early highs
of 1.0885 and 1.2723, respectively. The franc is seen finding
support around 1.13 against the euro and 1.31 against the
pound.
Looking ahead, Canada existing home sales for October, U.S.
business inventories for September, New York Fed's empire
manufacturing survey for November, retail sales, industrial
production, export and import prices, all for October, will be
featured in the New York session.
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