Thursday, May 24, 2007

Swiss Franc Shows Weakness Against Majors Early Thursday, Thursday, May 24, 2007 4:31:23 AM

During the early hours on Thursday, ahead of the release of the Swiss Q1 employment level data, the Swiss Franc lost ground against its major counterparts. However, amid the release, the major Swiss Franc pairs traded slightly higher, but the gains were given back within a few minutes. Of late, the Franc is moving sideways against the Cable but continuing its downtrend against the rest of majors.

The final numbers of the German Q1 GDP and the import and export data released at 2:00 am helped the Franc to trade higher versus the euro, but the pair bounced back soon after. The recent deals of the Franc against the Euro came amid the release of the German IFO business climate indicator for the month of May.

The traders are now looking for the Swiss ZEW survey for May and the British CBI industrial trends survey for the same month. The US durable goods and the new home sales data for April are scheduled for later in the morning.

The Swiss Franc traded in a tight range versus the U.S. dollar on late Wednesday in New York. The Franc started to strengthen at 1:50 am ET Thursday and hit a high of 1.2265 within about an hour. Soon after, ahead of the release of the Swiss Q1 employment level data, the Franc gave back the gains completely. However, following the release, the Franc gained some pips but it has been trading down again lately. As of 4:30 am Eastern Time, the Franc fetched 1.2290 against the dollar.

During the late hours on Wednesday, the Swiss Franc drifted higher against the Euro. At about 8:45 pm ET, the pair followed a sideways movement and extended the same trend until the German data was released on early Thursday. Amid the release, the Franc advanced and fetched a high of 1.6497 by about 2:35 am ET. The Franc then slipped slightly but the Swiss data which was released at 3:15 am ET helped the Franc to bounce back the recent losses. Currently the Franc has been losing ground again and as of 4:30 am Eastern Time, traded at 1.6512 against the Euro.

The Swiss currency showed choppy trading against its British counterpart in the late deals on Wednesday. The Franc gained some momentum at about 1:50 am ET Thursday, but it fell sharply within half an hour. The pair thus climbed from 2.4367 to 2.4425 by about 3:10 am ET and this was ahead of the release of the Swiss economic data. Following the release, the Franc strengthened slightly and it was quoted at 2.4412 against the Cable as of 4:30 am ET.

Against the Yen, the Swiss Franc ticked down on late Wednesday in New York and this came amid the release of the Japanese economic data. However, at about 8:20 pm ET, the pair traded slightly higher and entered a loose range. The pair resumed the same trend until about 2:25 am ET Thursday, but the Franc lost ground thereafter. The Swiss Q1 employment data released during the session strengthened the Franc slightly but the gains were given back soon after. As of 4:30 am Eastern Time, the Franc collected 98.86 against the Yen.
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