Posted April 10, 2010
In Friday’s trading, the Swiss franc fell against the euro. The euro continues to rebound has Greek debt concerns fall.
The Swiss franc was one of the main players in the currency trading on Friday. During trading, the franc fell significantly against the euro. The fall was due to speculation by traders that the Swiss central bank sold the currency to prevent the currency from appreciating in value.
The Swiss franc moved to 1.4386 per euro, which is about 0.4 percent. It fell 0.2 percent weaker to 1.4362 at early afternoon trading on Friday.
The Swiss bank did not make any comment in regards to the speculated currency sale by the central bank. However, currency traders speculated that officials might be in the market because the currency has moved very narrowly recently, suggesting it is being controlled. The threshold seems to be 1.4320 currently.
Euro Trades Up
In Friday trading, the euro moved higher as the traders felt less concerned about the debt strapped Greece. It was clear that a bailout package for the country was closer and that turned currency traders to the euro. The euro is seen as a higher risk asset, as are stocks and most other commodities.
In trading, the euro gained 1.1 percent by late afternoon trading. It rebounded after a dip in the later day. The dip was caused by Fitch Ratings downgrading Greece debt to a new junk status. The euro moved up closer to $1.35. Interestingly no solid plans for a bailout plan for Greece emerged during the day, but traders felt more confident overall. Some believe a rescue package could happen over the weekend.
By the Numbers
By late in the day, the euro was at 41.3471 which is an improvement over the $1.3349 it was at, at the end of trading on Thursday. As the euro gained, it stopped the five session increases for the US dollar. The US dollar fell from 93.36 yen to 93.23 yen by end of the day trading. The euro moved from 124.63 yen to 125.59 yen during the day. Further, the US dollar moved from 1.0739 Swiss francs to 1.0663 francs. The UK pound moved as well from $1.5267 to $1.5371.
The Canadian dollar did not fare well in trading on Friday. A less than ideal jobs report for the country showed that only 18,000 jobs were added across the country. The report out from Statistics Canada kept the Canadian dollar from fall below parity with the US dollar.
Canadian economists still believe that the Canadian economy is building and gaining momentum, but at a slower rate than expected. It is believed that the Canadian currency will remain very close to parity with the US dollar for some time. The Canadian dollar has reached 100.01 against the US dollar in trading, but the increase did not hold. The Canadian dollar closed at 99.6 cents against the US dollar, a fall of about 0.12 of a cent from Thursday evening trading.