Published: 14 Aug at 1 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, USA, France, Germany, Switzerland,
During the European session Switzerland
’s Franc declined against the majority of its most traded currency rivals, notably softening to a month-low against the Euro after data revealed that the Eurozone had finally exited its record long recession.
The 17-nation currency bloc posted quarter-on-quarter growth of 0.3 per cent in the second quarter, while the economies of Germany
(the Eurozone’s most prominent members) also expanded by more than anticipated.
After the data was published European Union Economic and Monetary Affairs Commissioner Olli Rehn stated: ‘This slightly more positive data is welcome, but there is no room for any complacency whatsoever. A sustained recovery is now within reach, but only if we persevere on all fronts of our crisis response.’
Although tentative, the positive results dampened the appeal of the Swiss Franc, which has been something of a European safe-haven in troubling financial times, and saw the currency slide to 1.24385 against the Euro – its lowest level for over a month.
The Franc also tumbled to 93.75 against the US Dollar. The North American asset was boosted yesterday by a promising gain in US retail sales.
In response to the Franc’s movement, currency strategist Kasper Kirkegaard commented: ‘We definitely have a bias for a weaker franc. Given the recovery we are seeing in European economic data, this removes one of the big tail risks that has been holding back risk sentiment. If some of the money that has flowed into the Swiss economy reverses, it should add pressure to the Franc.’
Meanwhile, the Pound also posted a notable advance on its main peers as the UK’s economic outlook was brightened by strong UK employment data.
As of Wednesday, 14th August 2013, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.1697, GBP USD exchange rate was 1.5509, and GBP CHF exchange rate was 1.4494.