Swiss Franc Weak Due to Risk Appetite, Domestic Data

The Swiss franc fell today as continuously rising yields and risk appetite made investors less interested in currencies considered to be safe. The Swissie lost even to the Japanese yen — another currency considered to be a safe haven. Switzerland’s macroeconomic data was poor, adding to pressure on the Swiss currency.
Switzerland’s Federal Statistical Office reported that the Producer and Import Price Index rose by 0.3% in January compared with December. That was a slower pace of growth than 0.5% registered in the previous month and 0.4% predicted by experts. The increase was mainly a result of higher prices for scrap, petroleum products, as well as for basic metals and semi-finished metal products. Looking at specific components of the index, the Producer Price Index rose by 0.2%, while the Import Price Index increased by 0.5%. Year-on-year, the overall index fell by 2.1%.
The yield on the 10-year Treasury note reached 1.352% yesterday — extremely close to 1.354% — the level not seen since last year. Rising yields on global bonds are a reflection of hopes for progress in COVID-19 vaccination and subsequent recovery of the global economy. Such an outlook makes market participants more willing to risk and have less need for safer assets, like the Swiss franc.
USD/CHF climbed from 0.8957 to 0.9007 as of 15:05 GMT today. EUR/CHF jumped from 1.0888 to 1.0938, and its daily high of 1.0949 was the highest since December 2019. CHF/JPY fell from 117.17 to 116.83, retreating from the daily high of 117.51.
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Original from: www.earnforex.com