The Swiss franc drifted lower against its major rivals in European deals on Wednesday, as European stocks rose ahead of Greek Parliamentary vote on bailout package aimed to secure financial aid.
Greek Prime Minister Alexis Tsipras on Tuesday defended the bailout deal struck at Sunday’s emergency Eurozone summit, saying that the “bad deal” was the best available under the circumstances to keep Greece in the EU.
Eurozone finance ministers will hold a conference call today to discuss the situation in Greece.
Federal Reserve Chair Janet Yellen is scheduled to testify before the House Financial Services Committee, with investors looking for hints regarding the outlook for interest rates. After yesterday’s disappointing retail sales report, investors are doubtful over whether tightening will start in September or December.
The German DAX rose 0.25 percent, the French CAC 40 added 0.27 percent and the U.K.’s FTSE 100 index advanced 0.31 percent.
The franc showed mixed trading in the previous session. While the franc held steady against the yen and the greenback, it advanced against the euro. Against the pound, the franc fell.
In European deals, the franc dropped to 130.16 against the yen, 0.9489 against the greenback and 1.0452 against the euro, from its previous highs of 130.74, 0.9441 and 1.0396, respectively. The next possible support for the franc may be located around 0.96 against the greenback, 129.00 against the yen and 1.05 against the euro.
The franc fell back to 1.4831 against the pound, heading to pierce near a 4-month low of 1.4835 hit in previous deals. The pair was trading at 1.4770 at Tuesday’s close. Continuation of the franc’s downtrend may take it to a support around the 1.50 mark.
Looking ahead, U.S. PPI and industrial production for June are slated for release in the New York session.
At 12:25 pm ET, Federal Reserve Bank of Cleveland President Loretta Mester will deliver a speech on the economic outlook and participates in a live interview before the Columbus Metropolitan Club Forum in Columbus U.S.
At 2:00 pm ET, Federal Reserve will release the Beige Book of economic conditions.
After an hour, Federal Reserve Bank of San Francisco President John Williams is expected to speak about the economic outlook at the Mesa Chamber of Commerce in Phoenix, Arizona.
The material has been provided by InstaForex Company – www.instaforex.com