There was no love for the euro or the Swiss franc despite better-than-expected economic updates from Europe, suggesting no-deal Brexit fears may have been the big theme of the week.
European Headlines and Economic data
The Swiss Franc
Swiss Headlines and Economic data
Strong turn lower in the franc during the U.S. session, likely moving lower as broad risk sentiment rose ahead of the FOMC statement. It’s also possible that the rising probability of a no-deal Brexit scenario is putting pressure on the euro and franc.
August 2020: For the first time since March, exports exceeded the 18 billion franc mark – This resulted in a trade surplus of CHF 3.4B.
We saw a round of net weakness in the Swiss franc despite broad negative risk sentiment during the Friday session (thanks to a combination of scenarios ranging from a low expectancy of a new stimulus package from the U.S. government, the possibility of the U.K. locking down once again, and as the U.S. tech sector continues to fall), suggesting counter currency flows and Brexit fears were the main drivers for the lean lower in the franc.