The Euro to Swiss Franc (EUR/CHF) exchange rate has improved since yesterday, and is stable ahead of the Bundestag vote results later today.
Clear German Approval Could Send Common Currency back up Against ‘Swissie’
The Euro (EUR) has trended narrowly against the Swiss Franc (EUR/CHF) today, as German votes continue to be cast to decide whether the country will approve the Greek bailout. At the time of writing, events appeared to be proceeding favourably, although the future integrity of the current Greek parliament has been a subject of uncertainty. Thomas Oppermann, a Social Democratic Party of Germany (SPD) member of the current coalition government, said that while the bailout as a whole is supported by Greece’s parliament and the Greek people, the Greek Syriza party appears to be on the verge of a split.
The Euro to Swiss Franc (EUR/CHF) exchange rate has fallen since yesterday, although given the currently stable performance of the Euro (EUR), the Franc’s (CHF) advantage doesn’t seem set to last.
Slight Rise in Gold Price Pushes ‘Swissie’ Up Against Euro
The Euro (EUR) has dipped by -0.2% against the Swiss Franc (EUR/CHF) today, although the common currency has had a relatively secure run of play elsewhere. The fall against the ‘Swissie’ (CHF) can be attributed to a minor rise in the price of gold, which is a key reserve commodity for Switzerland.
The Euro looks set to strengthen across this week, as the Greek bailout agreement has already secured the required approval of several European parliaments. Not all the dates and times of the remaining votes are known, but today, Austria, Estonia and Spain are due to make their decisions. Given that the finance ministers of these nations approved the deal last Friday, an approval has been implicitly implied, although the ultimate decision currently rests in the hands of the MPs of the appropriate nations.
The Euro to Swiss Franc (EUR/CHF) exchange rate has risen today as the prospect of a Greek bailout conclusion this week has bolstered the common currency (EUR).
EUR to CHF Exchange Rate News: Euro Confidence caused by German Agreement
The Euro (EUR) has risen marginally against the Swiss Franc (EUR/CHF) today but has seen larger advances elsewhere. The single currency has risen by 0.4% against the Indian Rupee (EUR/INR) and the South African Rand (EUR/ZAR) today and has seen a greater gain of over 0.5% against the Australian Dollar (EUR/AUD) and the Canadian Dollar (EUR/CAD).
This uptrend for the single currency is a result of Friday’s negotiations for the third Greek bailout; the proposal managed to pass the scrutiny of the Greek parliament and Eurozone finance ministers, and now just needs the approval of European parliaments before it is finalised. German Chancellor Angela Merkel offered surprising support to the deal by advocating possible Greek debt relief, something that many German MPs have historically been against in proceedings.
CHF/EUR Trending Narrowly as Euro Stability reduces demand for ‘Swissie’
The Swiss Franc (CHF) has trended narrowly against the Euro (CHF/EUR) today and has had a similarly marginal performance elsewhere. This comes after the annual Swiss Retail Sales figure for June showed a -0.9% decline; this is a continuation of last year’s contraction of -1.8%. The result is not indicative of high consumer confidence and the Euro’s (EUR) current uptrend has only added to the devaluation and reduced demand for the safe-haven currency.
The Swiss Franc rose by 0.2% against the Australian Dollar (CHF/AUD) today, but has trended narrowly elsewhere.
EUR to CHF Exchange Rate Forecast: Rising Euro to continue Damaging Franc
Unless anything untoward happens during parliamentary votes this week, the Euro (EUR) is likely to continue its current uptrend against the Swiss Franc (EUR/CHF). A majority refusal in the German parliament would constitute ‘untoward’, although it is possible that Merkel’s statements will quell any dissenters during voting.
The Swiss July Trade Balance is due on Thursday and if the results are overwhelmingly positive, it remains a possibility that the ‘Swissie’ (CHF) will bounce back against the common currency (CHF/EUR).
Current EUR, CHF Exchange Rates
The Euro to Swiss Franc (EUR/CHF) exchange rate was trending in the region of 1.0838 and the Swiss Franc to Euro (CHF/EUR) exchange rate was trending in the region of 0.9233 today.