Swiss Franc Shrugs Off Poor Domestic Data

Economic data released in Switzerland today was rather poor, but that did not prevent the Swiss franc from rising against its most-traded peers during the current trading session. The possible reason for the good performance was risk aversion ahead of today’s important events.

SECO consumer sentiment was at -2 in October, almost unchanged from -3 in the previous quarter, whereas analysts had expected an increase to 0. Retail sales fell 0.4% in September compared with the previous year, a result that was completely opposite to the increase by 0.3% predicted by experts.

Meanwhile, traders were waiting for the announcement of a new Federal Reserve Chairperson by US President Donald Trump and a reveal of a tax reform. Turning away from the United States, the Bank of England will announce its policy decision at 12:00 GMT today, possibly hiking interest rates for the first time in a decade.

USD/CHF dropped from 1.0026 to 0.9992 as of 10:43 GMT today. EUR/CHF slipped from 1.1652 to 1.1636. GBP/CHF declined from 1.3283 to 1.3213.

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