On Thursday trading, the dollar slipped sharply against a basket of major currencies including the Swiss franc, yet the decline against the franc was minimal as the franc was adversely affected by downbeat trade data.
The dollar continued its drop after the release of data showing that initial jobless claims rose to 418,000 in the week ended July 16 from 408,000 a week before. The Franc, on the other hand, fell earlier on Thursday versus the greenback after a report showing that trade surplus narrowed to 1.74 billion francs in June compared with the prior surplus of 3.25 billion francs. Johann Schneider-Ammann, the Swiss Economy Minister, said the franc’s appreciation against the euro is “alarming.” Thus, an intervention by the SNB may be expected if the franc strengthened further.
Moreover, the week ends with the release of no data from both economies which suggest that the pair will follow the general sentiment in market. The main focus this week is on the European Summit as eyes are on the action of European leaders to see whether they are able to launch a seco