Swiss Franc Among Weakest as Investors Don’t Shun Risk

The Swiss franc was among the weakest among major currencies on the Forex market today, along with the US dollar and the Japanese yen — other currencies considered to be safe. That suggests that risk appetite has been driving markets on Friday.
Domestic macroeconomic data has not been helping the Swissie either. Switzerland’s Federal Statistical Office reported that industrial production dropped by 3.8% in the fourth quarter of 2020 from a year ago. Secondary sector production declined by 3.1%. The report commented on the result:

For 2020 as a whole which was shaped by the Covid 19 pandemic, there were strong decreases in production (-3.3%) and turnover (-5.2%). The last time such losses were observed in production figures was in 2009, a year affected by the financial crisis.

Construction production was the only part of the report that showed at least some positivity, rising by 0.2%.
The rally of commodity currencies, even those who have been under pressure from negative factors, showed that markets were in a strong risk-on mode today. One of the possible reasons for investors’ optimism was the rally of global stocks. While the Asian stock market demonstrated losses on Friday, both European and American equities demonstrated significant gains. But market analysts pointed at another factor that has been likely supporting currencies linked to commodities — gains in the metal market. In particular, copper has been trading about 2% above the opening level for a while, though at the time of writing it has surged above 4%.
USD/CHF fell from 0.8957 to 0.8945 as of 16:30 GMT today. EUR/CHF rallied from 1.0827 to 1.0856. AUD/CHF jumped from 0.6955 to 0.7041, trading near the highest level since May 2019.
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Original from: www.earnforex.com