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Wed 3 Jun 2020 07:13GMT

Euro advances against Swiss Franc (EUR-CHF) as Gold Prices Remain Inconsistent

Published: 5 Oct at 3 PM Tags: Euro, America, Eurozone, USA, Germany, Switzerland,

EUR-CHF Exchange Rate Fares Well in spite of Eurozone Results Coming up Sour

On a day that has provided little cause for clear celebration among investors in the Euro, the common currency has managed to hold its ground, rising against the Swiss Franc to the rate of 1.0935 today. While the Franc has been damaged in its valuation by the price of gold once again diving after a period of sustained increase, the Euro has contributed more than enough to its side of the pairing to generate a significant lead against the Swiss Franc. By all rights, the single currency should be performing incredibly poorly at present owing to the sheer number of negative results that have been recorded today, but instead, the Euro has bucked trends to seize the lead against the ‘Swissie’ and a number of other rivals.
The most notable rises and falls in the Eurozone results today have been the Sentix Investor Confidence score which fell from 13.6 to 11.7, the Eurozone annual Retail Sales figures for August which came in at 2.3% and the German and Eurozone Composite and Services PMIs, which have all dropped unexpectedly.

The Euro’s positive performance in spite of all this uncertainty can be attributed to a widespread sense of relief on the part of investors over the future of the Eurozone, as while the figures do indicate a slowdown in growth, they nonetheless still indicate that growth is occurring.

Common Currency (EUR) Exchange Rate may rise Further still if Predictions for Swiss Data Prove Accurate

In the future, the EUR-CHF pairing is most likely to be affected by tomorrow’s Swiss CPIs and Eurozone PMIs, as well as Thursday’s Swiss Unemployment Rate results and the European Central Bank’s (ECB) Account of the Monetary Policy Meeting.
No prediction has been made for the Harmonised variant of the Swiss CPIs tomorrow, but for the base version, forecasts are for a -1.5% decline. The Eurozone PMIs (also out tomorrow) are expected to have a significant impact on the movement of the pairing, particularly as Germany’s last Construction PMI from August posted just above the contraction mark at 50.3 points.

Unfortunately for Swiss Franc supporters, Thursday’s unemployment data has no change predicted for the base result and a 0.1% increase for the seasonally-adjusted form of the results. Finally, the ECB Account is likely to trigger major shifts in the EUR-CHF conversion rate if ECB members expressed support for utilising further quantitative easing in the future, as such remarks will undoubtedly send the single currency spiralling downwards given the pessimistic connotation of such a measure on the minds of investors.

As of Monday, 5th October 2015, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.3535, GBP USD exchange rate was 1.5147, and GBP CHF exchange rate was 1.4779.
Dominic Lee About Author: (412 Posts)With over ten years experience as an economist – including four years spent as a chief economist with a major currency broker – Dominic has acquired a wealth of knowledge which he uses to forecast market movements. Dominic now works as an independent business advisor and writes for several financial publications.

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