Swiss Franc Shows Mixed Trading Against Majors
In early deals on Friday, the Swiss franc showed mixed performance against its major counterparts. The franc advanced against the yen and the dollar, but it declined against the pound and the euro.
The Swiss franc weakened against the pound after reaching a high of 1.7718 at 2:15 am ET Friday. The franc thus dipped to a 3-day low of 1.7875 per pound by about 5:35 am ET and this may be compared to yesterday’s close of 1.7748. On the downside, 1.789 is seen as the next target level for the Swiss currency.
The Swiss franc that closed yesterday’s trading at 1.5101 against the euro dropped to 1.5129 during early deals on Friday. The next downside target level for the Swiss currency is seen at 1.515.
Germany’s Federal Statistical Office said today that the producer price index or PPI dropped 3.6% year-over-year in May, after falling 2.7% in April. This was the lowest annual rate of PPI since April 1987. The producer prices figure in May came in line with economists’ expectations.
On a monthly basis, the PPI remained unchanged in May, compared with a 1.4% fall in the preceding month.
Another report showed that Italy’s seasonally adjusted jobless rate rose to 7.3% in the first quarter from an upwardly revised 7% recorded in the final quarter of the previous year. The jobless rate, which is reportedly the highest in three years, matched economists’ expectation.
In early trading on Friday, the Swiss franc strengthened against the yen. Currently, the franc-yen pair is trading at a 3-day high of 89.42 with 89.8 seen as the next target level. At yesterday’s close, the pair was quoted at 88.95.
The Bank of Japan today released the minutes of its policy board meeting held May 21-22. Minutes of the meeting showed that some Bank of Japan policy board members said the timing of the termination of temporary measures to increase liquidity depends on market conditions.
“Some members said that whether or not the bank would continue with various temporary measures, which were to be terminated on or after Sept. 30, should be determined based on close examination of developments in financial markets and corporate financing,” the summary of meeting discussions said.
The Swiss franc rose to 1.0834 against the dollar at 1:25 am ET Friday. Although the franc slipped thereafter, it rebounded after hitting a low of 1.0895 by about 4:45 am ET. As of now, the dollar-franc pair is trading near yesterday’s close of 1.0863. The near term resistance for the Swiss currency is seen at the 1.077 level.
