Saturday, 27 August 2011

Franc Falls as Bernanke Improves Sentiment on Markets

The Swiss franc slumped nowadays after Federal Reserve Chairman Ben. S. Bernanke spoke nowadays, improving sentiment on markets, while rumors abound that Switzerland’s policy manufacturers are preparing another action to weaken the Swiss currency.

There are totally different opinions on what steps Switzerland is going to take in order to weaken its currency. Some analysts speculate that the Swiss National Bank is preparing another intervention. Some experts predict that native banks may impose charges for franc deposits. regardless of the truth is, the rumors undermine franc’s strength.

Optimism, caused by the speech of Chairman Bernanke, influenced the franc even a lot of, perhaps. Jeremy Stretch, head of currency strategy at Canadian Imperial Bank of Commerce, thought:

What Bernanke said suggested was perhaps the world’s economic weakness is not so bad that it warrants another round of QE, and that helped to damp demand for the franc. There has also been speculation about the SNB’s possible further action on the franc, which makes the market cautious.

USD/CHF climbed from 0.7928 to 0.8060 as of 20:11 GMT nowadays after touching the daily high of 0.8157, the best level since July twenty two. EUR/CHF advanced from 1.1401 to 1.1684. CHF/JPY sank from ninety seven.61 to 95.05, while earlier it reached very cheap worth since June twenty — ninety four.44.

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