Swiss Franc Falls Amid Risk Appetite

The Swiss franc declined against its most major counterparts in the European session on Thursday amid risk appetite, as Chinese exports and imports data topped expectations, signaling improvement in the world's second-largest economy.

China's May exports rose 8.7 percent from a year earlier in dollar terms, while imports jumped 14.8 percent, official data showed. Analysts surveyed by Bloomberg News expected exports and imports to surge by 7.2 percent and 8.3 percent, respectively.

Voting gets underway in the U.K. with the latest polls predicting a narrow victory for Theresa May's party over the main opposition Labour Party. The election would give the U.K. Prime Minister a chance to expand her parliamentary majority ahead of the start of negotiations on leaving the European Union.

The European Central Bank's policy decision is awaited, with ECB President Mario Draghi expected to perform a complicated balancing act on rates as the euro zone recovers.

Data from the Federal Statistical Office showed that Switzerland's consumer price inflation accelerated unexpectedly in May.

Inflation rose marginally to 0.5 percent in May from 0.4 percent in April. Inflation was forecast to ease slightly to 0.3 percent.

The franc held steady against its major rivals in the Asian session, with the exception of the yen.

The franc fell to a 9-day low of 1.2539 against the pound and 6-day low of 1.0876 against the euro, off its early highs of 1.2474 and 1.0848, respectively. If the franc extends decline, 1.26 and 1.10 are likely seen as its next support levels against the pound and the euro, respectively.

Reversing from an early high of 0.9629 against the dollar, the franc edged down to 0.9673. The next possible support for the franc is seen around the 0.98 region.

On the flip side, the franc rose back to 113.89 against the yen, heading to pierce its early 2-day high of 113.98. Continuation of the franc's uptrend may see it challenging resistance around the 115.00 level.

Data from the Cabinet Office showed that Japan's gross domestic product was revised down to +0.3 percent on quarter in the first three months of 2017.

That missed forecasts for an increase of 0.6 percent after last month's preliminary reading called it at 0.5 percent.

Looking ahead, the European Central Bank announces decision on interest rates at 7:45 am ET. The bank is expected to keep refi rate at zero percent and asset purchase program at EUR 60 billion a month.

In the New York session, U.S. weekly jobless claims for the week ended June 3, Canada housing starts for May and new housing price index for April are set for release.

Euro vs CHF (FX:EURCHF)
Graphique Historique de la Devise
De Mar 2024 à Avr 2024