Franc slightly weaker again – Euro above 0.93 Fr.
Published: Thursday, Dec 28th 2023, 21:50
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The Swiss franc weakened somewhat against the euro over the course of Thursday evening. However, the EUR/CHF currency pair was still lower in the late evening than the previous evening.
The euro traded at 0.9338 francs in the evening. In the late afternoon, it was still trading well below 0.93 francs with a daily low of 0.92575 francs. Only the day before, the exchange rate had fallen below 0.94 francs and had continued to weaken since then. According to currency traders, the franc was thus more expensive than ever before, excluding the sharp fluctuations of January 15, 2015, following the discontinuation of the minimum euro exchange rate.
The dollar also initially continued its slide against the Swiss currency on Thursday. However, the US currency also recovered by late evening: it was quoted at 0.8436 francs and thus back above 0.84 francs.
In market circles, the strength of the franc was primarily attributed to a weak dollar, exacerbated by a very thin market at the end of the year. Expectations of interest rate cuts in the USA in particular are putting pressure on the US currency. The US Federal Reserve is expected to cut interest rates quickly and sharply in the coming year, but the ECB is also likely to lower its key interest rates in 2024. The possibility of interest rate cuts by the SNB is considered to be lower.
However, the euro also weakened somewhat against the dollar on Thursday. In US trading, it even slipped back below the 1.11 dollar mark. The European single currency last traded at 1.1065 dollars. Rather weak economic data from the US labor market did not weigh on the dollar in the afternoon.
In the US, the number of initial jobless claims has risen more sharply than economists had expected. The data points to a certain weakening of the labor market, which has remained robust recently. Developments there play an important role for the US Federal Reserve's monetary policy.
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