The Swiss franc gained as the problems in Europe made traders flock to the currency, even though it’s hard now to be consider the Swissie a ”safe currency” after the euro-peg was implemented by the central bank. That peg was likely the reason the franc wasn’t been able to rise against the euro, while the troubling signs from Switzerland itself made investors prefer to buy the yen than the Swiss currency.

The announcement of the plans to help Greece weakened fears for a short time. But as turned out, the concerns just shifted to Italy. The auction of the Italian debt showed the increasing yield for the country’s bond and reminded traders that Greece isn’t the only country of the European Union that faces difficulties.

The economy of Switzerland has its own difficulties as was demonstrated by the KOF Leading Indicators. The KOF Economic Barometer fell to 0.80 in October from 1.21 in September, while a smaller decline to 1.00 was predicted. The report commented on the drop of the index:

This suggests Swiss economic growth is likely to slow markedly, although a recession is not likely to develop within the next few months.

USD/CHF closed at 0.8820, falling from 0.8935. CHF/JPY closed at 85.99 after opening at 86.28.

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