Swiss Franc Sets New Records on Continued Positive Sentiment

Swiss Franc Sets New Records on Continued Positive Sentiment

The Swiss currency reached a new all-time record against the US dollar and did well against the other major currency pairs today, as the market participants continued to base their positions on the positive monthly outlook report released earlier by the central bank of Switzerland.

The franc rose against the US dollar, breaking the record high level set on April 21 — the USD/CHF pair is in a constant bearish wave since June 2010. The Swiss franc also gained against the euro, following 3 days of rather directionless trading, and also outperformed the Japanese yen today. Traders are reacting to speculations that the country’s monetary policy may be tightened soon.

Swiss National Bank has released its April 2011 monthly statistical bulletin 4 days ago, demonstrating optimism in the country’s economic development. At the same time, the country’s main danger is still presented by the over-appreciationof the currency, which may keep the bankers from raising the interest rates soon. Nevertheless, the currency traders are using the current sentiment as a reason to continue buying francs.

USD/CHF fell from 0.8852 to 0.8805 as of 16:08 GMT today, reaching the lowest point at 0.8772 earlier — the new record low for the pair. EUR/CHF declined from 1.2888 to 1.2836, while CHF/JPY rose from 92.38 to 93.00 today.

Source : http://www.topforexnews.com

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