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Mixed German Data Leaves EUR CHF Trending Lower

January 12, 2017 - Written by Ben Hughes

The Euro to Swiss Franc exchange rate continued to fluctuate within a narrow range on Friday afternoon as no fresh influential data moved the exchange rates from the day’s opening levels.

The Swiss Franc may see an increase in demand in the next week however as US President-elect Donald Trump will be inaugurated on the 20th and could see investors flocking to ‘safe haven’ currencies.

[Previously Updated 12/01/2017]

Euro to Swiss Franc Update: Losses for Euro Follow German Uncertainty Entering 2017

The Euro has fallen marginally against the Swiss Franc today, to an exchange rate of 1.07. This loss for the Euro comes after a pair of high-impact German data releases painted an uncertain picture of the national economy.

On the plus side, full-year GDP in 2016 rose from 1.7% to 1.9%. Less supportively, the German Government’s budget fell slightly from 0.7% to 0.6% over the year.

Other Eurozone news has focused on the level of industrial production in November, which has risen notably on the month and the year.

Euro Economic Outlook: Next Week to Bring Eurozone Trade Balance, ZEW Survey Figures

The coming week will bring major Eurozone economic announcements, culminating in Thursday afternoon’s first European Central Bank (ECB) interest rate decision of the year.

Ahead of this high-impact news, however, Euro investors will need to watch out for Monday morning’s Eurozone trade balance figures for November, which previously saw the budget surplus come in at 20.1bn.

Tuesday morning’s contributions will include ZEW economic sentiment indexes for January; both Germany and the Eurozone posted positive results in December.

Swiss Franc Euro Exchange Rate News: Steady Rise in Gold Prices Firm CHF Support

The Swiss Franc has seen minor gains against the Euro today, thanks to the supportively high price of gold.

Although prices are still at a low since November’s highs last year, the upward momentum currently being seen bodes well for future movements in the price of the commodity.

The most notable source of influence elsewhere for Franc demand has been President-Elect Donald Trump – after a conference marred by controversy, interest in the US Dollar plummeted, which led investors to turn to commodities like gold instead.

Swiss Economic Forecast: Next Week to Bring Additional ZEW Confidence Results

As with the Eurozone, ZEW survey score results are due for Switzerland next week, with the Swiss variants coming on Wednesday morning.

Also out next week will be Thursday’s Swiss producer and import price indices, which previously rose on the month in December but fell on the year.

As with this week, gold prices are still set to influence Swiss Franc demand and any further US Dollar upsets are only likely to boost the appeal of the ‘Swissie’ between now and next Wednesday.

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