Swiss franc rises

29 Aug, 2006

The Swiss franc rose against the dollar in early trading on Monday and was little changed versus the euro as markets waited for a speech of Swiss National Bank chairman Jean-Pierre Roth later in the session to look for hints on the SNB's rate path.
The franc was up against the US currency by 0.2 percent at 1.2362 per dollar and traded almost unchanged against the euro at 1.5814 per euro. The franc has been stuck in a close range around 1.58 per euro for the last week. "As such the cross could not benefit from positively surprising Swiss fundamentals for another week," UBS analysts wrote in a note.
Economists are now waiting for the KOF business expectation indicator and the Swiss PMI, both due this week, for clues on Swiss growth and its implications for the SNB's monetary policy. "We thereby are looking for a stabilisation of the two above-mentioned indicators at very elevated levels indeed," the UBS analysts wrote.

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