Euro to Swiss Franc (EUR/CHF) Exchange Rate Down 0.2%
Although the Eurozone’s trade surplus was shown to have widened in December, the Euro softened slightly as the European session continued and doubts crept in regarding the likelihood of the Eurogroup reaching a workable Greek debt agreement.
If tonight’s meeting fails to progress the situation, the Euro could extend declines.
The Euro to Swiss Franc (EUR/CHF) exchange rate was trading in the region of 1.0606
EUR/CHF Exchange Rate Trends in Narrow Range
As European officials gather to debate the Greek debt situation, the Euro to Swiss Franc (EUR/CHF) exchange rate was trading in the region of 1.0627.
If a decision is reached in the hours ahead, the EUR/CHF currency pair could experience notable volatility.
The Eurozone’s trade balance data (due out at 10:00 am) could also have an impact on the common currency.
The Euro to Swiss Franc (EUR/CHF) exchange rate ended the week in a stronger position despite continued uncertainty regarding the Greek debt situation.
EUR/CHF Exchange Rate Fluctuates on ‘Grexit’ Fears
The Euro to Swiss Franc (EUR/CHF) exchange rate fluctuated between 1.04 and 1.06 over the last five days as ‘Grexit’ concerns continued to dominate demand for the Euro.
The week started positively enough, with Greek officials vowing to reach an agreement with the nation’s creditors.
However, over the next couple of days Germany made its position on the subject abundantly clear, with the nation’s Finance Minster Wolfgang Schaeuble dismissing the Greek proposal for a restructuring of their debt obligations.
A gathering of finance ministers from across the European Union also failed to progress the situation.
In the view of industry expert Arthur Beesley; ‘Given the gulf between Athens and its sponsors, the mood in Brussels is pessimistic. Greek banks are already in danger of running out of money, so political meetings next Monday and Tuesday are pivotal. An orderly salve is urgently needed. That the quest to buy time is a high stakes affair is obvious, but this is to say nothing of the ever-deep divisions over the long-term outlook for Greece and its membership of the single currency.’
Even so, on Friday a spokesman from the Greek government expressed hopes that key talks, taking place at the beginning of next week, will end positively.
Over the course of the week Switzerland published unemployment and inflation figures.
The level of Swiss joblessness increased from 3.4% to 3.5% in January, as forecast. On a seasonally adjusted basis, unemployment dipped from 3.2% to 3.1%.
The CPI data came in at -0.5% year-on-year.
Euro to Swiss Franc (EUR/CHF) Exchange Rate Forecast
The Swiss reports with the most potential to cause EUR/CHF exchange rate movement this week include the nation’s ZEW Expectations Survey, which printed at -10.8 in January, and Switzerland’s trade balance, import/export numbers.
Of course, economic reports from the Eurozone will also continue to have a marked impact on the direction taken by the EUR/CHF currency pair.
ZEW is due to publish Economic Sentiment/Current Situation surveys for Germany and the Eurozone’s Economic Sentiment measure.
The Consumer Confidence gauge for the 19-nation currency bloc will also be of interest, as will Markit’s preliminary Manufacturing, Services and Composite indexes for the Eurozone, France and Germany.
If the pace of sector growth in the Eurozone and its largest economies is shown to have picked up, it will support the Euro.
Sliding figures would have a negative impact on the common currency before the weekend.
Additionally, any developments in the Greek debt negotiations are liable to cause volatility in the currency market.
Any positive progress (which would see the Hellenic nation remaining part of the currency bloc) may drive the Euro higher while growing Grexit fears would undermine demand for the currency.
The Euro to Pound Sterling (EUR/GBP) exchange rate closed out the week trading in the region of 0.7400
The Pound Sterling to Euro (GBP/EUR) exchange rate was trading in the region of 1.3525
The Euro to Swiss Franc (EUR/CHF) exchange rate was trading in the region of 1.0610
The Swiss Franc to Euro (CHF/EUR) exchange rate was trading in the region of 0.9416