EUR Climbs Against the CHF

By IBTimes Staff Reporter | June 19 2009 5:13 AM

The EUR jumped against the Swiss franc on Thursday to as high as 1.5144 Francs amid speculation that the Bank for International Settlements was acting on behalf of the Swiss National Bank (SNB) to defend the 1.50 Franc level, analysts said. The EUR may weaken however against the Swiss Franc should the SNB soften its stance on weakening its currency, according to analysts.

Sponsorship Link

The EUR also advanced against 12 of the 16 major currencies on speculation that the European Central Bank's (ECB) officials speaking tomorrow will signal they plan to keep Interest Rates on hold, maintaining the allure of assets in the 16-nation region. The EUR also gained for a second day versus the Pound after U.K. Retail Sales unexpectedly dropped in May for the first time in 3 months.

The European currency appreciated to as high as 0.8604 vs. the Pound Sterling, and may move higher to 90 pence in the next 3 months. Against the U.S Dollar, however, the EUR weakened to $1.3917, from $1.3955 yesterday. Investors have abandoned bets that the EUR would appreciate further after the common European currency failed to strengthen beyond $1.40.