• American focus: the dollar rose significantly against the Swiss franc

Market news

30 June 2015

American focus: the dollar rose significantly against the Swiss franc

The dollar strengthened against the euro sharply, recouping all the previously lost ground, and updating the maximum session. Experts say this is due to an increased demand for the greenback at the end of the quarter, as well as news on Greece. Athens almost certainly not pay today IMF debt of € 1.6 billion. At midnight expires and validity of the current program of financial aid to Greece. Meanwhile, today gave Greece a new package of proposals to creditors, including the launch of a 2-year program of financial assistance to the parallel debt restructuring. This program is supposed to be implemented within the framework of ESM and fully cover the country's needs in financing. This proposal is not expected to participate IMF was sent to Brussels, and the latest reports, this evening Eurogroup conference call. In addition, the media reported that Greece appealed to creditors with a request to extend the validity of the second program to avoid default. However, German Chancellor Angela Merkel on Tuesday expressed skepticism about the possibility of a deal between creditors and Greece at the last moment. Merkel said she sees no reliable signal for it and can accurately claim that the validity of the current aid program expires in the night from Tuesday to Wednesday. "I can only repeat what I said yesterday. Duration of the aid program expires today at midnight Central European Time," - she said. - I do not know of any other reliable signals. "She added that Berlin is open to talks with Greece after Tuesday, when it's the end of the term of the tranche of European aid programs.

The dollar also provided data on consumer confidence. Recall index of US consumer confidence from the Conference Board rose in June to the level of 101.4 points versus 94.6 points in May (revised from 95.4 points). Economists had expected the index was 97.1 points. The report said that the expectations index rose to 94.6 in June from 86.2 in May, while the current situation index rose to 111.6 points from 107.1 points.


The Canadian dollar fell close to 100 points against its US counterpart, reaching a minimum at the same time from June 8. The pressure on the currency was weaker GDP data. Real gross domestic product in Canada fell by 0.1% in April, the fourth consecutive monthly noting a decrease. Reduced output in industries producing goods outweighed the increase in the service sector. Production of goods decreased by 0.8% in April, down a fourth consecutive month, primarily by reducing the mining, quarrying and oil and gas. The decrease was also recorded in the manufacturing sector, communal services and construction. By contrast, the sector of agriculture and forestry increased. Release service industries in April noted an increase for the third month in a row, they rose 0.3%. The gain in April led the trade. There were also marked increases in the public sector, which combines education, health and public administration, as well as services in the accommodation and food, and professional services. On the other hand, there is a noticeable decline in the financial and insurance sector, and retailing.


The Swiss franc continued to fall against the dollar, losing all positions earned during yesterday's session. Traders say the dollar is currently in high demand as a safe haven. Meanwhile, the franc is cheaper on fears of another SNB intervention in the case of the further growth of the currency against the background of uncertainty about Greece. Also on the franc under pressure as previously reported. As previously reported, the economic sentiment in Switzerland unexpectedly eased in June to its lowest level in three and a half years, mainly due to the negative performance of the industrial sector. The index of leading economic indicators from the KOF fell to 89.7 from a level of 92.7 in May, which was revised up from 93.1. Economists had expected the index to rise for the second month in a row to a higher level of 93.6. The last reading was the lowest since December 2011, when the index was 87.2. "The outlook for the Swiss economy, according to the indicator, have become more negative in the coming months," said KOF. Negative sentiment manifested in almost all industrial categories with the largest negative contribution coming from the sector of metal and wood.

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