The Swiss franc depreciated vis-à-vis the U.S. dollar today as the greenback tested offers around the CHF 1.0615 level and was supported around the CHF 1.0575 level. Data released in Switzerland today saw February producer and import prices decline 0.3% m/m and fall 1.0% y/y. SECO March 2010 economic forecasts will be released tomorrow. As expected, Swiss National Bank last week kept its three-month Swiss franc Libor target rate unchanged at 0.2% today. SNB reported 'The Swiss National Bank is maintaining its expansionary monetary policy. It will act decisively to prevent an excessive appreciation of the Swiss franc against the euro. SNB is forecasting the Swiss economy will expand about 1.5% this year. SNB Chairman Hildebrand said the main risks to Swiss economic growth are external and reiterated foreign exchange intervention remains one of its tools. January M2 money supply growth was an annualized 16.5%. U.S. dollar offers are cited around the CHF 1.1045 level. The euro moved lower vis-à-vis the Swiss franc as the single currency tested bids around the CHF 1.4525 level while the British pound moved lower and tested bids around the CHF 1.5915 level.
Join the Discussion