Swiss Franc Rises In Cautious Trade
April 13 2022 - 2:20AM
RTTF2
The Swiss franc climbed against its major counterparts in the
European session on Wednesday amid safe-haven status, as investors
weighed threats from elevated inflation and Russian President
Vladimir Putin's pledge to continue the war in Ukraine.
Putin said on Tuesday that Russia's military operation in
Ukraine will continue until his goals are fulfilled.
The peace talks are 'at a dead end,' Putin said, adding that
there are no doubts about accomplishing his objectives in
Ukraine.
Markets digested Tuesday's U.S. inflation data that cemented
hopes for a 50 basis-point rate hike in May.
In the U.K., consumer inflation accelerated to a 30-year high in
March, putting the Bank of England on track to deliver another rate
hike next month.
The franc touched 135.42 against the yen, its highest level
since January 2015. The franc is seen finding resistance around the
137.00 level.
The franc edged up to 0.9314 against the greenback, from a low
of 0.9343 seen at 3 am ET. The franc is likely to challenge
resistance around the 0.90 level.
The franc advanced to near a 2-week high of 1.2101 against the
pound, off its prior low of 1.2140. Next key resistance for the
franc is seen around the 1.19 region.
The franc reached as high as 1.0088 against the euro for the
first time since March 8. If the currency rises further, 0.99 is
possibly seen as its next upside target level.
Looking ahead, U.S. producer prices for March will be released
in the New York session.
At 10 am ET, the Bank of Canada will announce its interest rate
decision. The BoC is widely expected to raise interest rate to 1
percent from 0.5 percent.
Sterling vs CHF (FX:GBPCHF)
Forex Chart
From Apr 2024 to May 2024
Sterling vs CHF (FX:GBPCHF)
Forex Chart
From May 2023 to May 2024