Swiss Franc Sees No Support from North Korean Missile Launch

The Swiss franc was stable today against some majors and continued to fall versus the very strong Great Britain pound. North Korea launched yet another missile, but that had little impact on markets, showing that market participants feel no need for safety. With that said, currently the franc is starting to move higher.

North Korea launched a missile over northern Japanese island Hokkaido today. The launch happened just a day after the rogue nation threatened a nuclear strike against Japan and the United States. Yet traders got used to provocations from North Korea, therefore demonstrated disinterest to the news.

The Swiss National Bank kept interest rates unchanged in the negative territory at yesterday’s meeting. The central bank dropped the mention that the franc is overvalued, but said that the currency “remains highly valued, and the situation on the foreign exchange market is still fragile.” Nevertheless, the depreciation of the franc allowed the SNB to revise the inflation outlook higher.

USD/CHF traded at 0.9614 as of 8:45 GMT today after opening at 0.9629 and rising to the daily high of 0.9679. EUR/CHF fell from 1.1476 to 1.1460. GBP/CHF rose from 1.2898 to 1.2915.

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