The Swiss franc has weakened sharply against the euro especially since the open of the European trading session. Euro has been on a roll, boosted by news European leaders agreed on a package to rescue debt-stricken Greece. This helped riskier assets gain, as investors turned away from safe haven currencies like the franc.
The euro rallied to a two-week high against the swiss franc early into the European session. EURCHF surged 92 pips from the open price of 1.1772 to a high of 1.1863 by 07:30 GMT. The Dollar is also gaining against the Swiss Franc, with USDCHF opening Europe at 0.8170 and gaining almost 60 pips to 0.8226.
Prior to the EU leaders emergency summit in Brussels on Thursday, euro was very volatile as fears of a possible Greek debt restructuring sent investors piling into the safe-haven swiss franc, pushing it up to several record peaks in the first half of the year.
However, since the conclusion of the EU summit yesterday, leaders of the 17-nation currency area pledged to conduct a second bailout of Greece with an extra 109 billion euros ($157 billion) of state funds.
“Euro/Swiss profited from what appears to be a regained momentum among European politicians in addressing the concerns of international financial markets on European fiscal issues,” UBS economist Reto Huenerwadel said in a note.