logo
  

Swiss Franc Declines Amid Risk Appetite

The Swiss franc drifted lower against its major counterparts in early European trading on Monday amid risk appetite, as oil prices advanced on continued hopes that oil producers would take steps to balance oil prices at the OPEC meeting in Algeria next month.

Crude for September delivery rose $0.31 to $44.80 per barrel.

The crude rally was supported by comments by Saudi Arabia Energy Minister Khalid Al-Falih last week, indicating willingness to coordinate with other OPEC and non-OPEC nations to address supply glut.

In economic news, data from Swiss Federal Statistical Office showed that producer and import prices declined in July, primarily due to lower prices for petroleum products and watches.

The index fell 0.1 percent on month, following a 0.1 percent rise in June. Economists have been expecting a decline of 0.2 percent.

The currency as been trading modestly lower in the previous session.

The franc pared gains to 103.64 against the yen, from an early high of 104.02. The franc is seen finding support around the 102.00 zone.

Data from the Cabinet Office showed that Japan's gross domestic product was unchanged on a seasonally adjusted quarterly basis in the second quarter of 2016.

That missed expectations for an increase of 0.2 percent following the 0.5 percent increase in the first quarter.

The franc fell to 0.9759 against the dollar and 1.0891 against the euro, off its previous highs of 0.9730 and 1.0871, respectively. If the franc extends slide, 0.985 and 1.10 are seen as its next support levels against the dollar and the euro, respectively.

Although the franc edged down to 1.2623 against the pound, it recovered slightly in a short while. The pair was valued at 1.2580 when it finished Friday's trading.

Looking ahead, New York Fed's empire manufacturing survey and U.S. NAHB housing market index for August are due in the New York session.

For comments and feedback contact: editorial@rttnews.com

Forex News

Major central banks, led by the U.S. Fed, dominated the economics scene this week with some delivering histroic shifts. In the U.S., the Fed was in focus as Chair Jerome Powell announced the latest policy decision and forward guidance. In Asia, all eyes were on the Bank of Japan as markets waited to see if the central bank would exit its ultra loose monetary policy. Find out how the Swiss central bank gave a surprise in Europe and learn what is the path ahead for U.K. interest rates.

View More Videos
Follow RTT