Franc Falls vs. Euro on Slower Manufacturing & Retail Sales
Today was a bad day for the safe currencies, including the Swiss franc, which fell against the euro. The franc also weakened after the macroeconomic data showed that the manufacturing slowed and the retail sails decreased. The Swiss currency outperformed the US dollar.
The Schweizerischer Verband fur Materialwirtschaft und Einkauf Purchasing Managers’ Index dropped to 59.7 this month, below the value of 61.4 in August and the market expectations of 60.8. The retail sales (not seasonally adjusted) rose in August 0.5 percent from a year ago. The previous month’s reading was 4.7 percent growth and the analysts expected the growth of 3.2 percent this month.
The Swiss National Bank said that at the beginning of next year there’s the ”possibility that inflation will temporarily turn slightly negative” and that the recovery “is not yet sustainable”. The bank kept its benchmark
USD/CHF closed today at 0.9750 after opening at 0.9825, while EUR/CHF closed 1.3436 after it opened at 1.3394.
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Earlier News About the Swiss Franc:
- Franc Heads to Record vs. Dollar (2010-09-28)
- Franc Reaches Record High Level Since March 2008 Against Dollar (2010-09-22)
- SNB Signals About Slower Growth of Swiss Economy, Franc Down (2010-09-17)
- Swiss Franc Reaches Parity with US Dollar as Growth Concerns Rise (2010-09-14)
- Swiss Franc Goes Down as China's Industrial Output Grows (2010-09-13)