Swiss Franc Drops vs. Euro, Driven by Data & Policy Outlook

The Swiss franc fell against the euro today as economic data and the monetary policy outlook were unfavorable to the currency. The Swissie was also falling against the US dollar at the start of the current trading session but managed to pare back losses by now.

The ZEW-CS-Indicator for the economic sentiment in Switzerland sank from 18.3 in October to 0.0 in November. Meanwhile, experts speculate that prospects for monetary easing from the European Central Bank may prompt the Swiss National Bank to also ease its policy and devaluate the franc. Obviously, neither of those factors are helpful to the currency.

USD/CHF slipped from the open of 1.0143 to 1.0137 as of 10:28 GMT today after rallying to 1.0169 intraday (reaching the highest level since January 15 when the SNB unpegged the franc from the euro). At the same time, EUR/CHF climbed from 1.0799 to 1.0819.

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