Swiss Franc up Overall As Pound Stays Mildly Down on Brexit Woes

Swiss Franc up Overall As Pound Stays Mildly Down on Brexit Woes

In relatively quiet markets today, the Swiss Franc rises sharply. The Canadian Dollar is the second strongest currency, followed by the US Dollar, though both currencies are trading within yesterday’s ranges.

Sterling is currently the currency with the weakest performance, followed by the New Zealand Dollar and finally the Yen. However, the selling in both is far from apparent. In other markets, Gold makes a second effort at the 1900 handle but fails to hold it. WTI crude oil is trading lower, with a target of 68.

The safe-haven CHF benefited from a milder risk tone, which put some pressure on the major. On Tuesday, the USD/CHF fell for the third day in a row, hitting one-week lows. The pair saw some selling, extending its recent slide from levels just above the mid-0.9000s, or three-week highs reached last Friday. This was the third day in a downward trend, which was fueled by the general sense of caution, which favors the safe-haven Swiss franc. However, slight US dollar growth could help limit the USD/CHF pair’s downside.

During the early North American session, the GBP/USD pair maintained its offered tone and was last seen trading around mid-1.4100s, a few pips above daily swing lows. The pair managed to establish on its gains from the previous two trading sessions, as it began retreating from the 1.4200 round-figure line once more. The downtick, which was fueled by several reasons, drove the GBP/USD pair to reverse the previous day’s upward trend.

Swiss Franc Will Remain Attractive – Swiss Finance Ministry

After the Group of Seven (G7) nations signed a groundbreaking agreement to support a minimum worldwide corporate tax rate of at least 15%, Switzerland’s Finance Minister stated in a statement on Monday that the country and swiss franc will likely remain attractive to industry.

“For Switzerland, the focus is on an overall package of competitive framework conditions for locating its own business.” “In any case, Switzerland will take the necessary steps to continue to be a very attractive place to do business.” Earlier in May, the consumer price index in Switzerland rose 0.6% y / y against 0.3% in April.

In the American session, the weakening of the US currency kept USD/CHF jittery. For the previous three weeks, the pair has been trading in a narrow range of 0.8950-0.9000. The USD/CHF currency pair is currently trading at 0.8970, down 0.05 percent on the day.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.