The Swiss Franc Weakens vs. Majors

The Swiss franc fell broadly against the European currency and the U.S dollar after the country’s central bank said the nation may need tighter financial regulation than the rest of the world. The franc declined on Swiss National Bank Chairman comments that the problems linked to the financial market are bigger in Switzerland than elsewhere in the world.

The CHF weakened 0.1% to 1.5131 per EUR, after depreciating to 1.5146. Against the Dollar the Franc declined 0.9% to trade around 1.0150. The Swiss franc fell even as stock markets declined, boosting demand for assets that are perceived to be safer, including the Japanese and U.S. currencies.

Analysts said that the Swiss franc seems to be less of a safe haven these days than the Yen and the Dollar, putting the currency under selling pressure. The Swiss National Bank (SNB) tends to intervene in the markets to weaken their local currency. While this intervention has proven to be short lived it may send the USD/CHF jumping upwards unexpectedly, creating an excellent opportunity for forex traders.

Nevertheless it looks like the current bearish trend for the Franc might continue, even if the SNB intervenes. The daily momentum indicators such as moving average convergence/divergence continue showing sell signals for the Swiss currency supporting a further upside for the USD/CHF with 1.0085 & 1.006 as next target prices.

source: forexyard.com