Market demand for safe haven currencies sent the Swiss Franc close to a 2-year peak versus the common currency Euro as the trade tensions between the United States and China increase. Donald Trump has hardened his stance on trade against not just China, in fact, but now Mexico and India, as well, which has prompted a move for FX traders away from perceived higher risk assets and currencies. The move toward the Swiss Franc is prompting investors to watch for the Swiss National Bank to intervene once again in the currency, as it did once before when it came close to the level at which it is now trading.
As reported at 10:23 am (GMT) in London, the EUR/CHF is trading at 1.1146 Swiss Francs, a loss of 0.11889%; the pair has ranged from a trough of 1.1197 Swiss Francs to 1.12136 Swiss France. The EUR/JPY is trading at 121.057 Yen, down 0.1659% and off the earlier low of 120.7850 Yen, while the high was set at 121.1100 Yen.
Pound Up Despite PMI
In the UK, the Pound Sterling is trading higher against the US Dollar despite the latest data which showed the Markit PMI for the Manufacturing sector falling to 49.4 in May, well below the 52.0 expected and a decline from the April reading of 53.1. The Markit Construction PMI is due out tomorrow and analysts are expecting a flat reading of 50.5 for the month of May. The GBP/USD was trading higher at $1.264, up 0.1045%; the pair has ranged from $1.2618 to $1.2661 in today's trading day.