The Swiss franc reached the record high level against the euro and the highest level since January 11th versus the US dollar today after the report showed the growth of the local consumption and as the demand for the safe haven increased the appeal for the franc, which is considered the safe currency nowadays.

Adam Cole, head of global foreign-exchange strategy at the Royal Bank of Canada, said that the demand for the safe haven “is as usual, spilling over to the franc” and added:

To the extent that data have been good recently, and therefore diminishing the risk of deflation, the central bank will be comfortable to let the currency appreciate as long as it’s not too rapid.

The Swiss National Bank, which previously was trying to stem the franc’s gains, now think that the risk of the deflation is gone, but continues to closely monitor the currency’s moves. The UBS AG Consumption Indicator (which combines reading of 5 economic indicators including consumer confidence, consumer spending, tourism, new car sales, and retail activity) continued to rise in July, increasing to the value of 1.86 from its June level of 1.80. The Swiss gross domestic product grew as much as 2.6 percent in the second quarter of this year, according to the estimates of some analysts.

USD/CHF fell from 1.0262 to 1.0150 today as of 23:47 GMT, while EUR/CHF dropped from 1.2994 to 1.2870.

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