USD/CHF up to 0.9350 as Euro-Area Economy Expands

The Swiss franc slid to the weakest in a month against the euro after a report showed the 17-nation region pulled out of recession last quarter, damping demand for the safety of the Swiss currency.

The Bloomberg U.S. Dollar Index fell from a one-week high as wholesale prices unexpectedly were little changed in July. The franc dropped versus most of its 16 major counterparts after German and French gross domestic product also exceeded analysts forecasts. The pound advanced for a fourth day against the euro after a report showed U.K. jobless claims dropped more in July than economists forecast. New Zealand’s dollar strengthened by the most in a week after retail sales jumped.

“The euro-swiss move is one of modest improvement in the fundamentals in Europe,” said Mike Moran, a senior currency strategist at Standard Chartered in New York. “We’re also starting to see foreign depositors, which have sought stability in Swiss-denominated assets, start to pare down some of those allocations.”

Bloomberg

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Stuart McPhee

Stuart McPhee

Senior Currency Technical Analyst at Market Pulse
Stuart McPhee has more than 16 years’ experience as a private trader and he specializes in technical market analysis of major currency pairs. He is the author of several bestselling trading books, most recently the fourth edition of his popular book “Trading in a Nutshell” (John Wiley), and he contributes articles to daily newsletters and blogs. He produces articles and videos on the how-tos of technical trading. Based in Australia, Stuart speaks at conferences and events worldwide.
Stuart McPhee