The Swiss franc declined to a new multi-week low against the pound during Monday's early trading. The franc slipped against the dollar too, but bounced back from a new multi-day low against the euro.
On the other hand, the franc strengthened to a new multi-month high against the Japanese yen, as risk appetite increased as Asian stock markets closed higher on growing confidence that recent government stimulus plans are starting to trickle through to the global economy.
Reversing the Asian session's downtrend, the franc advanced to 1.5252 against the euro by about 4:00 am ET Monday. This may be compared to a 10-day high of 1.5303 hit by about 3:35 am ET. The franc may likely test its resistance near the 1.517 level, if it rises further. The euro-franc pair was quoted 1.5247 at yesterday's New York session close.
The euro traded lower against its most major counterparts as the euro-zone February retail sales decline more than expected. Another report showed that euro-zone producer price index declined more than expected.
Eurozone retail sales volume dropped 0.6% in February from January, a report from the Eurostat showed Monday. Economists were expecting retail sales to drop 0.4% in February after rising 0.1% in January.
The Eurostat announced that Eurozone's producer price index dropped 1.8% year-over-year in February, after falling 0.7% in January. Economists were looking a decline of 1.5%. In December, producer prices were up 1.1%.
Elsewhere, the Sentix investor confidence for the euro area improved to minus 35.26 in April from minus 42.67 recorded in March. Economists had expected a reading of minus 40.4 for April.
The Swiss currency pared its early gains against the US dollar, sliding to 1.1316 after hitting a 10-day high level of 1.1244 during early Asian session. The dollar-franc pair closed Friday's deals at 1.1305. The near term support for the alpine currency is seen at 1.13.
No economic reports are due from US today. The Fed governor Kevin Warsh will speak about the financial markets at a conference in Washington D.C. at 1:00 pm ET.
The Swiss franc held ground near 90.03 against the yen by about 4:20 am ET Monday, marking its highest level since October 20, 2008. The pair that closed last week's deals at 88.74 is now quoted at 89.73. The next likely resistance level for the pair is seen around 91.00.
Japanese government intends to compile a new stimulus package worth 2% or more of gross domestic product, Finance Minister Kaoru Yosano told reporters after meeting Prime Minister Taro Aso.
Accordingly, new fiscal spending would exceed 10 trillion yen. Details of the third package are likely to be finalized by April 10.
The franc that traded lower against the pound in Asian trading added to its losses during European session and hit a new multi-week low of 1.6892 by about 3:00 am ET. Since then, the pair has been seeing uncertainty in direction and is now worth 1.6835. If the franc slides further, 1.704 is seen as the next likely support level. At last week's close, the pair was quoted at 1.6780.
UK Prime Minister, Gordon Brown will meet Bank of England Governor Mervyn King and Chancellor of the Exchequer Alistair Darling. Reports said Brown will discuss how to implement new regulations laid out in G-20 summit last week.
Financial Services Authority Chairman Lord Turner and Trade Minister Mervyn Davies will also attend. Brown also intends to meet commercial bank executives.
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