Swiss Franc Recovers From 6-day Low Against Euro
In early European deals on Wednesday, the Swiss franc strengthened against other major currencies on the back of upbeat domestic retail sales and manufacturing PMI reports. The franc thus recovered from an Asian session’s 6-day low against the euro.
Switzerland’s retail turnover grew at a pace of 0.7 percent month-on-month in April, up from 0.4 percent in March, the Federal Statistical Office said. On an annual comparison, turnover climbed 7.5 percent, reversing last month’s 0.2 percent fall in March.
Meanwhile, data from the SVME Association of Purchasing and Materials Management and Credit Suisse showed that the Swiss manufacturing growth improved unexpectedly in May. The Purchasing Managers’ Index came in at 59.2 in May, up from 58.4 in April. Economists had expected it to fall to 57.5.
The franc is now worth 1.2250 against the euro, compared to an Asian session’s 6-day low of 1.2320. If the franc gains further, it may likely target the 1.220 level. At yesterday’s close, the euro-franc pair was quoted at 1.2294.
After hitting a low of 1.4066 against the pound at 3:00 am ET, the Swiss franc gained ground. Currently, the franc is worth 1.4000 per pound with 1.395 seen as the next upside target level. The pound-franc pair was worth 1.4050 at yesterday’s close.
The franc is presently worth 0.8490 against the dollar and 95.95 against the yen, compared to yesterday’s close of 0.8542 and 95.49, respectively. The next upside target level for the Swiss currency is seen at 0.847 against the dollar and 96.1 against the yen.
Looking ahead, the Eurozone final manufacturing PMI data for May is due at 4:00 am ET.
At 4:30 am ET, U.K. mortgage approvals data for April and CIPS/Markit manufacturing PMI for May are slated for release.
Across the Atlantic, the U.S. ADP National employment report for May, construction spending for April and the ISM manufacturing index for May are expected to influence trading in the New York morning session.
