Friday, June 18, 2010
Forex: Swiss Franc surges after SNB statement
Swiss Franc has advanced against its major rivals reaching multi-week highs against Dollar and Pound after the SNB affirmed that Swiss economy is strong enough to cope with a strong Swiss Franc.
USD/CHF decline from 1.1545 high on Friday has extended 160 pips lower to a fresh 4-week low at 1.1170 so far, while the EUR/CHF decline from 1.4040 high on Tuesday has dropped 120 pips lower to 1.3755, approaching all time low at 1.3734. GBP/CHF decline from 1.6922 high on Tuesday has plunged 185 pips to 4-week low at 1.6435 so far.
The SNB has affirmed that Swiss economy continues growing despite the strength of the Swissy against the Euro, which according to the Bank is damaging Swiss export activity while omitting, for the first time, comments about movement to prevent excessive strengthening of the Swiss currency.