The Kiwi Dollar was the currency space’s largest single mover during the European trading session, pulling away from a 6-year trough with a half percent gain. The Aussie Dollar came under pressure after disappointing unemployment data was released. In Switzerland, the Swiss Franc moved lower versus the common currency after the release of data which showed that Switzerland’s economy has slipped further into deflation. There is some speculation that the Swiss National Bank may be behind the Swissie’s decline; analysts point out that it is the only G10 currency that is losing ground against the Euro.
As reported at 11:22 am (BDT) in London, the NZD/USD was trading at $0.6543, a rise of 0.48%; the pair traded within a band of $0.6510 and $0.6554. Meanwhile the AUD/USD was trading at $0.7330, down 0.30%; the pair ranged between $0.7316 and $0.7385 in today’s trade. The EUR/CHF was trading higher at 1.0698 Swiss Francs, a gain of 0.24%, close to the mid-point of the trading band.
Global Deflation a Threat
Analysts point out that while in the US expectations are growing that the Federal Reserve Bank will soon raise rates, the threat of a disinflationary trend across the rest of the developing world is keeping market players wary. Markets are already pricing in the possibility of a single rate hike for the year which analysts say is not likely to push the EUR/USD toward parity.
