The Swiss franc climbed against its major rivals in early European trading on Wednesday, as European shares fell on weak corporate earnings and investors focus on the European Central Bank’s decision tomorrow amid worries over deflation in the region.
Swiss banking giant Credit Suisse fell after it announced plans to raise roughly 6 billion Swiss francs in new capital after reporting a 24 percent decline in its third-quarter profit.
Encouraging euro zone bank lending data poured cold water on speculation that the ECB may expand its 1 trillion euro bond-buying program. Investors look forward to press conference by the ECB President Mario Draghi to assess whether he adopt a hawkish stance by failing to prepare the groundwork for further stimulus this year.
In economic news, figures from the Swiss National Bank showed that Swiss money supply growth slowed for the third straight month in September.
M3, the broad measure of money supply, grew 1.2 percent year-over-year in September, slower than August’s 1.4 percent climb. In July, money supply had risen 1.9 percent.
The franc showed mixed performance in the Asian session. The franc rose against the pound and the yen, but fell against the euro. On the other hand, it was steady against the greenback.
In early European deals, the franc recovered from an early 6-day low of 1.0861 against the euro, edging up to 1.0839. The franc is likely to find resistance around the 1.075 region.
The franc gained to 1.4702 against the pound, 0.9528 against the greenback and 125.80 against the yen, from its early lows of 1.4772, 0.9567 and 125.21, respectively. The next possible resistance levels for the franc may be located around 1.46 against the pound, 0.945 against the greenback and 127.00 against the yen.
Looking ahead, U.S. crude oil inventories data is slated for release in the New York session.
At 1:00 pm ET, Bank of England Governor Mark Carney is expected to speak at the Cairncross Memorial Lecture, in Oxford.
Federal Reserve Governor Jerome Powell will participate in a panel discussion at the Evolving Structure of the US Treasury Market Conference in New York at 1:30 pm ET.
The material has been provided by InstaForex Company – www.instaforex.com