19th Aug 2015 10:35
BRUSSELS (Alliance News) - The Swiss franc climbed against the other major currencies in European deals on Wednesday, as European stocks declined ahead of the release of the Federal Reserve's minutes of July meeting and on concern over slowing economic growth in China.
The minutes of the Federal Reserve's July 28-29 meeting, due at 2:00 pm ET, could offer vital clues about whether the Fed will likely make its first interest-rate hike in nearly a decade next month.
Persistent worries over stability of Chinese economic growth made investors nervous. Investors were scared that deflationary pressures of a slowdown in China's economy would sap growth globally.
Germany's Bundestag is voting on Greek bailout deal, amid rebellion among Chancellor Angela Merkel's alliance over the EUR 86 billion package. Eurozone finance ministers will hold a conference call to finalise the Greek bailout deal at night. Greece owes EUR 3.2 billion payment to the European Central Bank on August 20.
The franc showed mixed performance in the Asian session. While the franc declined against the euro, it advanced against the rest of major rivals.
The Swiss currency appreciated to 0.9728 against the greenback, its highest since August 14. The franc is likely to challenge resistance around the 0.96 zone. The pair ended Tuesday's trading at 0.9769.
Bouncing off from an early low of 127.15 against the yen, the franc advanced to a weekly high of 127.72. Continuation of the franc's uptrend may take it to a resistance surrounding the 128.5 level. At yesterday's close, the pair was valued at 127.25.
The franc reached as high as 1.5245 against the Sterling, from an early low of 1.5323. If the franc continues its uptrend, 1.515 is possibly seen as its next resistance level. The pair was worth 1.5292 when it closed yesterday's trading.
UK interest rates will rise "pretty soon" from their record low levels and indicates a sign of health for the economy, Bank of England policymaker David Miles said.
In an interview to BBC Newsnight on Tuesday, Miles, who is set to retire this month, said,"I don't think it's anything to worry about, it's a sign of health."
The franc added 0.2% to hit near a 2-week high of 1.0744 against the European currency. Further uptrend may lead the franc to a resistance surrounding the 1.05 zone. The euro-franc pair finished Tuesday's deals at 1.0769.
Data from the European Central Bank showed that the euro area current account surplus increased for the first time in five months.
The current account surplus rose to a 3-month high of EUR 25.4 billion in June from EUR 19.1 billion in May. This was the first increase since February.
Looking ahead, US CPI data for July is slated for release in the New York session.
At 2:00 pm ET, the minutes of the US Federal Reserve's July monetary policy meeting is scheduled to be published.
Copyright RTT News/dpa-AFX