Swiss Franc Weakens Amid Risk Appetite

The Swiss franc fell against its major rivals in the European session on Friday amid risk appetite, with a weaker euro and a slew of well-received corporate earnings updates supporting sentiment. Investors cheered the prospect of continued stimulus in Europe, after the European Central Bank signaled that it would extend its QE program into 2018, but at a reduced pace of 30 billion euros. Meanwhile, Spanish lawmakers are preparing for a parliamentary vote that would allow Madrid to take control over Catalonia In the U.S., House Republicans narrowly passed a budget resolution that clears the path for Congress to fast-track tax reform. Investors await the advance reading on U.S. third-quarter GDP and President Trump's pending decision on Fed chair nomination for more direction. The currency was trading mixed in the Asian session. While it held steady against the euro and the yen, it fell against the greenback. Against the pound, it rose. The franc declined to 113.80 against the yen, its lowest since September 15. The next possible support for the franc is seen around the 112.00 region. Data from the Ministry of Internal Affairs and Communications showed that Japan's consumer prices rose 0.7 percent on year in September.

That was in line with expectations and unchanged from the August reading. The franc dropped to near a 6-month low of 1.0038 against the greenback, compared to 0.9976 hit late New York Thursday. If the franc extends decline, 1.01 is possibly seen as its next support level. Reversing from an early 3-day high of 1.1610 against the euro, the franc declined to 1.1649. The franc is seen finding support around the 1.19 mark. Survey of Professional Forecasters published by the European Central Bank showed that Eurozone longer-term inflation was forecast to be higher than previous projection, while near-term inflation expectations remained unchanged.

Longer-term inflation expectations were revised upwards to 1.9 percent from 1.8 percent. The Swiss currency slipped to a 2-day low of 1.3140 against the pound, after having advanced to 1.3056 at 4:30 am ET. Continuation of the franc's downtrend may see it challenging support around the 1.35 region. Looking ahead, U.S. advanced GDP data for the third quarter and University of Michigan's final consumer sentiment index for October are set for release in the New York session.

CHF vs Yen (FX:CHFJPY)
FXチャート
から 3 2024 まで 4 2024