Safe-haven status helps Swiss franc advance

Story link: Safe-haven status helps Swiss franc advance

Consumer prices were up from 2.4 percent in July to 2.5 percent in August, sending core inflation up to 1.1 percent year-on-year, up from 0.9 percent in July. It was the fourth month in a row in which the consumer price index stayed higher than the Bank of England’s target of 2 percent. This new data has most analysts expecting that the Bank will raise interest rates again in November.

The new economic data sent sterling up by 0.4 percent in relation to the euro, to £0.6771. Sterling was also up versus the US dollar, by 0.6 percent to $1.8746 percent.

In the United States, a trade deficit that was up in July to a new record $68 billion was given short shrift by investors, who attributed a significant portion of the deficit to soaring commodity prices, which are now falling, by significant amounts in the case of oil. The dollar was just slightly higher against the euro, to $1.2694.

The Swiss franc gained ground on the US currency, adding 0.3 percent to SFr1.2477, while it added 0.2 percent in relation to the euro, to SFr1.5838. The Swiss currency was helped as it once again took on safe-haven status after the Syrian government said that it had stopped an attack against the US Embassy in Damascus.

Meanwhile, the Japanese yen was about the same in relation to the euro at ¥149.50, while it dropped 0.2 percent versus the US dollar, to ¥117.83.