Swiss Franc Vulnerable Without Help from Risk Aversion

The Swiss franc was weak today as risk aversion on the market has petered out, making traders less interested in safety provided by the currency. Switzerland’s macroeconomic reports were not supportive to the currency either.

Swiss gross domestic product rose 0.3% in the second quarter of this year. While it was an acceleration from the previous quarter’s negatively revised increase of 0.1% (0.3% before the revision), the actual growth failed to reach the 0.5% mark promised by forecasters.

The Consumer Price Index remained unchanged in August, exactly as was predicted by specialists. It was an improvement compared to the 0.3% decrease in the previous month.

North Korea rattled markets yesterday by its nuclear test. But markets have calmed down today despite reports that the rogue nation is preparing for yet another test.

USD/CHF was little changed at 0.9573 as of 16:01 GMT today. GBP/CHF jumped from 1.2368 to 1.2459. CHF/JPY declined from 114.42 to 113.76.

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