The Swiss franc gained on the extremely weak US dollar today. The currency also halted its decline against the euro after 10 consecutive sessions of losses. Still, the Swissie remains an inherently bearish currency due to the negative fundamentals.
State Secretariat for Economic Affairs released its consumer confidence survey today that said “consumers still rather downbeat.” The monetary policy outlook also remains a negative factor to the Swiss currency. With prospects for additional monetary easing from the
European Central Bank, there are strong chances that the Swiss National Bank will follow suit and cut interest rates further into negative territory from the current level of -0.75 percent.
USD/CHF
dropped from 1.0041 to 0.9951 as of 18:18 GMT today. EUR/CHF backed off to 1.1145 after rallying from 1.1150 to 1.1197 — the highest level since the SNB unpegged the franc from the euro on January 15.
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