Euro declines against Swissy

ForexNewsNow | Published on July 12, 2011 at 3:09 am

ForexNewsNow – The euro fell to 1.1741 against the Swissy, a decline of 1.3% from Friday and a fall below the previous all-time low of around 1.1806, according to RBC Capital Markets.

“Fears over Italy are likely to intensify in the days ahead, and the [European Union] may step up its efforts to address the sovereign-debt crisis given the heightening risk for contagion,” observed David Song, currency analyst at DailyFX.

According to analysts at Pictet, one of Switzerland’s largest private banks, “the weeks to come will be very painful for a variety of countries, starting with the United States and their very precarious situation. The Swiss Franc will surely face some tough times that the Swiss National Bank (SNB) will have difficulty containing.”

For Richard Hastings, a strategist with Global Hunter Securities, the question remains whether the Swiss National Bank (SNB) would feel compelled to intervene to curb Swiss franc strength, but this remains speculative. “Given their experience last year during the height of the Greek crisis, my guess is that [the SNB] would be reluctant to do anything other than smooth the prices.”


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