Could The Euro Stand Up To The Swiss Franc?
Everyone knows that Switzerland declined to be part of the Euro, and they have kept their own franc as a result. Now that we are several years into having the single currency and the Euro is in quite a bit of trouble of late, it will be interesting to see whether the Swiss franc is able to take advantage at its time of trouble.
The opening rate as November got underway was 1.3708, but it wasn’t long before the Euro was struggling to keep up with the Swiss franc. By the 5th of November it had slipped back considerably to 1.3546, leaving us wondering how strong the Swiss franc would prove to be in this interesting situation.
As the week beginning the 8th November got underway, the Euro saw the next drop – this time falling to 1.3435. It was not the best start to the week but somehow we were now expecting everything to become much harder. And indeed it did, as the Euro fell to 1.3282 on the 11th of the month. We were just one third of the way through the month and already things were looking pretty dire for the Euro. The Swiss franc was clearly showing its prowess and strength at a time when the Euro could do nothing to stand up to it.
It did manage to rally to 1.3357 as the week came to an end, but we had the feeling that the slightly higher figures on the currency converter would be just a slight reprieve instead of a major difference. You could have called that particular week a week of surprises though, because it was when the Euro suddenly put in a show of strength to finish the week on 1.3607. Suddenly things were looking a lot more interesting. Perhaps the Euro would manage to claw back some of its losses for the month after all?
But perhaps it wouldn’t. This turned out to be the calm before the storm, and two days into the new week we were back on 1.3338. This wasn’t the end either, as the last full week of November ended on 1.3252. It could have been worse, but there was still more to come.
In those last couple of days of the month, the Euro dropped another significant amount and finished up on 1.2990 against the Swiss franc. This will definitely be one to watch in the future months, as we see what happens to the single currency.