ZURICH: The Swiss franc fell against the euro on Wednesday as stronger-than expected economic growth data from France and Germany buoyed the single currency ahead of preliminary euro zone growth data later in the day.
The franc after Swiss National Bank board member Fritz Zurbruegg said in a newspaper interview that the franc was still high and the SNB would maintain the 1.20 per euro cap imposed in September 2011 for as long as it was needed.
In early trading the franc slipped to its lowest since July 11 against the single currency after passing the 1.24 per euro mark for the first time in three weeks.
The dollar also moved higher against the franc, adding to three sessions of gains as robust U.S retail sales data released on Tuesday bolstered talk the US Federal Reserve could soon start trimming its stimulus package.
Traders will be focused on second-quarter economic growth estimates in the euro zone after preliminary data showed France pulled out of recession in the period with better-than-expected growth of 0.5 percent and Germany growth also beat forecasts.
If preliminary data show the overall growth in the quarter for the euro zone, it will be the first expansion since the third quarter of 2011, Commerzbank analysts said in a note.
The franc fell 0.3 percent against the dollar compared to the New York close to trade at 0.935 per euro by 0625 GMT.
The franc fell 0.3 percent against the euro to 1.2409 francs per euro.
Comments
Comments are closed for this article.