Dollar/Swiss weakens ahead of GDP
Following on from the rise of the Dollar/Swiss (USDCHF) past the parity level of 1.00, the answer to the question asked here , was ‘longer than we expected’. The Dollar had flirted with par again a couple of times but we haven’t seen any meaningful breach until today, when it has been driven down to 0.9920 (at the time of writing). We feel that the buying of Swiss Francs is something of a ‘safe haven’ knee jerk to political uncertainties which are currently affecting the equity and US Treasury bill markets, and the disappointing tone of comments surrounding the US-Chinese trade negotiations, but the trend for the US currency is definitely feeling a little softer with domestic issues still burdening the Presidency of Donald Trump, and the relentless negative campaign now finding a convenient canary in the form of his former lawyer. Dollar Bulls are now pinning their hopes on positive GDP data released at 13:30 GMT today (expected +2.5%).