Swiss Franc Recovers From New Multi-day Lows Against Dollar And Yen
Thursday, the Swiss franc recovered from an early Asian session’s new multi-day lows against its U.S. and Japanese counterparts. On the other hand, the franc edged down against the European currency and the British pound.
Against the US dollar, the Swiss currency gained ground after hitting a 17-day low of 1.0289 during early Asian deals on Thursday. At 5:10 am ET, the franc reached a high of 1.0235 against the dollar, compared to 1.0273 hit late New York Wednesday. The next upside target level for the franc is seen around 1.020.
The franc that closed Wednesday’s North American session at 1.6822 against the British pound slipped to 1.6875 at 3:10 am ET Thursday. The pound-franc pair is currently trading at 1.6859 with 1.716 seen as the next target level.
The Swiss franc showed weakness against the European currency during Thursday’s early deals. At 6:20 am ET, the franc declined to 1.5116 against the euro, compared to Wednesday’s closing value of 1.5105. On the downside, 1.518 is seen as the next target level for the Swiss franc.
Eurozone economic sentiment rose for a seventh consecutive month in October after hitting the trough in March, results of the latest business and consumer survey by the European Commission showed today.
The economic sentiment indicator rose to 86.2 in October from 82.8 in September, while economists had forecast a reading of 84.4. All the sub-indicators of the economic sentiment showed improvement in the month, except retail trade, where the sentiment stabilized.
Germany’s Federal Statistical Office announced today that the ILO unemployment rate stood at a seasonally adjusted 7.6% in September, down from 7.7% in August. A year ago, the jobless rate was 7.1%.
The Swiss franc that touched a 15-day low of 87.96 against the Japanese yen during today’s early Asian deals strengthened thereafter. The franc-yen pair that closed Wednesday’s New York deals at 88.39 is presently trading at 88.62. If the pair gains further, 89.3 is seen as the next target level.
In economic news, industrial output in Japan was up 1.4 percent on month in September, the Ministry of Economy, Trade and Industry said today, posting an index score of 85.1. The reading marked the seventh straight month of gain and also came in above expectations for a 1.0 percent increase following the 1.6 gain in August.
On an annual basis, output was down 18.9 percent compared to forecasts for a 19.3 percent decline after the 19.0 percent contraction in the previous month.
Also, an index measuring corporate service prices in Japan was down 3.2 percent on year in September, the Bank of Japan said, posting a score of 98.0. That was marginally better than forecasts for a 3.4 percent annual decline after the 3.5 percent fall on year in August.
From the U.S., the Bureau of Economic Analysis is due to release its advance third quarter GDP report at 8:30 AM ET. The report is likely to show that the U.S. economy contracted at a 3.2% rate in the quarter.
At the same time, the Labor Department is due to release its customary weekly jobless claims report for the week ended October 24th. Economists expect claims to have declined to 525,000 in the recent reporting week.
