News Column

Swiss Franc Falls Amid Risk Appetite

June 9, 2014

BRUSSELS (Alliance News) - The Swiss franc weakened against the other major currencies in the European session on Monday amid risk appetite, as European stocks rose due to encouraging data out of China and Japan.

Japan GDP rose 1.6% quarter-over-quarter, bigger than the 1.5% growth estimated initially and the consensus estimate of 1.4% growth. This followed a 0.1% rise in the fourth quarter and marked the fastest increase since the 2.6% increase in the third quarter of 2011.

Data published by the General Administration of Customs over the weekend showed that Chinese exports growth accelerated to 7% on a yearly basis in May from 0.9% in April.The trade surplus increased significantly to USD35.9 billion, the largest since 2009, from USD18.5 billion in the previous month.

The Swiss franc fell to 4-day lows of 1.2194 against the euro, 0.8955 against the US dollar and 1.5048 against the pound, from last week's closing quotes of 1.2188, 0.8927 and 1.5003, respectively . If the franc extends its downtrend, it is likely to find support around the 1.22 against the euro, 0.90 against the greenback and 1.51 against the pound.

The Swiss franc slipped to 114.41 against the yen, from last week's closing quote of 114.64. If the franc extends its downtrend, it is likely to find support around the 113.42 area.

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Source: Alliance News

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