CHF Currency Attempts to Test Monthly Highs as the USD Gains

CHF Currency Attempts to Test Monthly Highs as the USD Gains

On Tuesday, the CHF currency slightly fell from its monthly highs as the USD strengthened. The Swiss franc declined 0.01% to $0.92, a modest change from its previous gains.

Switzerland’s economy continued to recover as its second-quarter gross domestic product climbed 1.80% from its previous 0.40%.

The services sector of the country rebounded strongly as pandemic measures eased.  For instance, the hotel and restaurant sector jumped 48.90% as the trade sector spiked to 4.80%.

In addition, private consumption growth edged up to 4.10% from 3.10% in the first quarter. Thus, the Swiss National Bank remained optimistic that the GDP would rapidly extend its gains in the later months. 

Consequently, this positive outlook helps the CHF currency to limit losses. The USD/CHF pair also reacted relatively to the substantial employment numbers. 

In August, Switzerland’s unemployment rate declined to 2.90% from the recent forecast and previous data of 3.00%. It is the lowest unemployment rate data since April 2020. Furthermore, the positive data capped off the downsides of the CHF currency.

Meanwhile, the US dollar index, which measures the greenback against other currencies, soared 0.02% to $92.53. The greenback buoyed against its major peers as the benchmark 10-year United States Treasury Notes improved by 1.37% from 1.29%. 

Accordingly, the Australian dollar climbed 0.03% to $0.74 as the Reserve Bank of Australia pursued tapering its bond-buying. Similarly, the Japanese yen hiked 0.04% to $110.31. Consequently, the pound sterling declined 0.04% to $1.38 after the British government announced its increase in taxes. Additionally, the New Zealand dollar plunged 0.05% to $1.40 as the Canadian dollar plummeted 0.06% to $1.27.

Dollars to Euro Up Ahead ECB meeting

Moreover, the Dollars to Euro exchange rate soared ahead of the European Central Bank meeting this Thursday. The EUR/USD pair inched up to 0.01% to $1.18, below its one-month peak of $1.19 last Friday. 

The ECB will finalize its decision to cut its stimulus imposed on the economy at the upcoming meeting. 

Consequently, analysts forecast purchases on the pandemic emergency purchase program to plummet $71.04 billion from the current $84.72 billion.

Meanwhile, the European gross domestic product soared 2.20% from 2.00% in the first quarter. In addition, the second-quarter eurozone employment rate hiked to 158,952.50 from its previous rate of 158,446.70. Besides, the CHF currency against the euro climbed 0.04% to $0.10.

Furthermore, other currencies also improved against the dollar. The Mexican peso inched up 0.06% to $19.93. Likewise, the South African rand hiked 0.12% to $14.31. Similarly, the Indian rupee increased 0.24% to $73.62.