The Swiss franc climbed against its most major rivals in European deals on Tuesday, as European stocks declined on weak corporate results.
Swiss drug maker Novartis fell after the company reported a weak second quarter profit due to lower sales and the negative effect of a stronger dollar.
French distiller Remy Cointreau dropped after recording weak first quarter sales in organic terms, while Tele2 AB slipped as its second quarter profit decreased from last year.
The currency has been trading higher after data showed that Switzerland’s foreign trade surplus increased in the six months ended June.
Figures from the Swiss Federal Customs Administration showed that trade surplus rose to CHF 17.7 billion during the first half of this year from CHF 15.989 billion in the previous six-month period.
Exports fell 2.6 percent in the six-month period to June and imports plunged by 7.4 percent.
Meanwhile, Greece’s stock and bond markets are likely to remain closed through Wednesday, when the parliament would vote again towards the final negotiations for the third bailout deal. Lawmakers are due to vote on the laws pertaining to civil justice reforms, as well as approve an EU measure known as the Bank Recovery and Resolution Directive for the future recapitalisation of Greek banks
The franc showed mixed performance in the Asian session. While the franc advanced against the euro, it held steady against the pound. Against the greenback, the currency fell. Meanwhile, it recovered from an early low against the yen.
In European deals, the franc edged up to 1.4961 against the pound and 0.9607 versus the greenback, reversing from an early low of 1.5017 and a session’s low of 0.9648, respectively. The franc is likely to find resistance around 1.485 against the pound and 0.95 against the greenback.
The franc hit a 4-day high of 129.39 versus the yen, off its previous low of 128.69. If the franc continues its rise, it is likely to find resistance around the 130.00 mark. At yesterday’s close, the pair was valued at 128.70.
The franc has been trading range-bond against the euro since the morning deals, with the pair moving in the 1.0445-1.0425 range.
Looking ahead, Bank of England Governor Mark Carney is expected to speak at the Policy Exchange Summer Reception in London at 2:00 pm ET.
The material has been provided by InstaForex Company – www.instaforex.com