Swiss Franc Weakens Against Majors

The Swiss franc dropped against its major counterparts in the European session on Tuesday, as encouraging comments by European Central Bank official lifted sentiment.

In an interview with Reuters, ECB board member Isabel Schnabel said that the slowdown in inflation raised the prospect of no more rate hikes by the central bank.

Schnabel's comments strengthened expectations for a 25 basis point cut by the ECB in March.

U.S. job openings data is due later in the day, and non-farm payrolls data will be published on Friday.

On the economic front, the HCOB services PMI for the euro area also increased to 48.7, from 47.8 in the previous month. Economists were expecting a rise to 48.2.

The franc dropped to 0.8748 against the greenback, 1.1043 against the pound and 0.9469 against the euro, from its early highs of 0.8714, 1.1007 and 0.9438, respectively. The franc is seen finding support around 0.92 against the greenback, 1.15 against the pound and 1.00 against the euro.

The franc touched 167.71 against the yen, setting a 6-day low. The next possible support for the franc is seen around the 128.00 level.

U.S. ISM services PMI for November will be out in the New York session.

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