Forex: USD/CHF stable on soft Swiss manufacturing update

on Jul 1, 2013
Listen Monday July 1st:_ The US dollar has so far today remained stable against the Swiss franc, opening at 0.9454 and currently changing hands around 0.9450.

The SVME Swiss Purchasing Managers Index for June came out today as a fall to a seasonally adjusted 51.9 from May’s reading of 52.2. Manufacturing activity in the country declined at a slower rate than expected though, and the reading remains comfortably above the 50 mark separating expansion from contraction.

Meanwhile, the US dollar is being supported by renewed expectations that the Fed will soon start tapering its $85 billion/month bond buying programme and the generally positive US economic news in recent weeks.
On Friday the franc was buoyed by the KOF Leading Indicator, a measure of future trends in overall economy activity, which for June came out at 1.16 points, up from May’s 1.09 (revised from 1.10) and continued an upward trend which bodes well for the Swiss economy.