The positive economic data from China caused the Swiss franc to depreciate against the euro, as the signs of the Chinese economic growth decreased the demand for the safety. The US dollar weakened versus the franc.
The annual growth of the Chinese factory output was 13.9 percent in August. The good macroeconomic data from China boosted the equities, causing the MSCI World Index to rise 1.4 percent. The resulting optimism among the traders wasn’t good for the franc, as the investors tend to buy this currency in times of economic instability and sell it with improving risk appetite in favor of the
The Swiss currency will likely continue to appreciate this year as Switzerland’s stable economic growth will support the demand for the franc. The Swiss gross domestic product rose 0.9 percent in the second quarter of this year, following the 1.0 advance in the first quarter. The Swiss National Bank will announce its decision about the interest rates on September 16th.
USD/CHF slumped from 1.0190 to 1.0076 today as of 21:58 GMT, while EUR/CHF went up from 1.2948 to 1.2974, following the jump to 1.3037.
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