The Swiss franc extended its gains today as stocks and commodities declined after the UK gross domestic product unexpectedly declined last quarter, reducing investors’ willingness to risk.
The Swiss franc, which is considered to be a safe currency, benefits from the risk aversion sentiment across the markets. And the investors indeed turned away from riskier assets after Britain’s GDP posted the unexpected decline because of the bad weather in December. The franc gained for the third consecutive day.
Poor risk sentiment affected stock and commodities, further increasing demand for safety. The Stoxx Europe 600 Index dropped 0.7 percent. The Thomson Reuters/Jefferies CRB Index of raw materials slumped 1.5 percent to 327.57.
USD/CHF traded near 0.9425 as of 01:10 GMT today after yesterday’s decline from 0.9490 to 0.9422. EUR/CHF traded at 1.2877 after it decline on the previous trading session from 1.2943 to 1.2889.
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