at 09: 45 today, Monday morning the Swiss franc to the Euro at 1,112 Swiss francs. Up in the afternoon, the price has not risen massively. Thus, the Swiss franc against the Euro was worth as much as in July 2017. Also the Dollar, the Swiss franc strengthened today. The price for a fine ounce of Gold is increasing, meanwhile, about 1’315 Dollar, and so on to the highest level since the end of March.
dealers mention as a reason for this, in particular, the fear of investors that the trade dispute between the United States and China could lead to a global recession. The recent threat by the United States against Mexico leave at least fear, that the United States is willing to use trade restrictions to enforce all of its interests, commented on the Valiant Bank and regardless of whether recently, new trade agreements had been concluded or not.
“Should this sample school, would undermine the international trade and with it the cross-border supply chains, which may weaken the global growth in such a way that it would lead to a global recession.”
uncertainty about Germany
another reason for the strength of the Swiss franc was that the European Central Bank (ECB) could be Central to signal on Thursday of their next session, a loosening of its monetary policy. And also in the USA, more and more experts expect a rate cut in July.
in Addition kidding with the development of the policy in Germany, where there may be new elections in the offing, they say. And also the “well known problems” Brexit and the budget dispute in Italy with the EU weakened the single currency.
“Against such a Backdrop, investors are playing it safe and take refuge in the safe harbors. And the Swiss franc,” said a trader, first and foremost.
advantages and disadvantages, depending on your perspective
For all who earn their bread in Swiss francs, it means the cheaper Items beyond the border, more buying power for the holidays abroad and tends to be a cheaper import goods in this country. Just it always takes a while until the importers their prices customize also really to the new circumstances.
The other side of the coin is that the pressure on the Swiss export economy will rise again. This had gotten in the last two years, and again a little air to Breathe, after it had been through Frank shock at the beginning of 2015 by shaken. The advantage of today: The industry already knows, as they must with such sporting conditions. (SDA/kst)