Forex Trading News – Swiss Franc reaches record highs against Dollar and Euro

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The Swiss franc hits fresh all-time highs against both the U.S. dollar and the Euro this morning, reacting to comments by the International Monetary Fund which suggested Switzerland should raise interest rates soon.

A higher interest rate would make the Swiss currency more attractive to investors thereby making it appreciate in value. However, the downside is that a strong Swiss Franc could be detrimental to exports. For the time being the Swiss National Bank has hinted that it is reluctant to raise rates.

Most of the Swiss Franc’s gains are based on developments in the other currencies.

A broadly weaker greenback has helped the Swissie gain as much as 130 pips just in Asian trading today which is when the all time USDCHF low as reached at 0.8531. The USD is still suffering after weak U.S. economic data on GDP and jobs weighed down on the US currency.

The Franc also hit a record 1.2162 against the weaker Euro in early trading. The Single Currency was bruised after Eurogroup President Jean-Claude Juncker raised doubts about the IMF releasing Greece’s next round of financial assistance.

Both currency pairs have pulled since the records were hit, allowing investors to take profits.

All focus is now on economic data to be released later today on the Swiss KOF Economic Barometer due at 0930GMT.