“The Swiss franc rose to its strongest level in nearly 1 1/2 years against the euro this morning,” notes EverBank’s Chris Gaffney. “A Swiss government report showed annual producer and import prices declined at the slowest pace in more than a year, dampening fears of deflation.
“Economic growth seems to be taking hold, and the Swiss National Bank has been quiet in the currency markets, letting the franc appreciate. The SNB sold francs last year in order to hold down its appreciation versus the euro, but they seem to be willing to accept a higher franc given the recent economic data.
“With the Greek debt problems continuing to keep the euro volatile, investors may be wise to look at the Swiss franc as an alternative.”
“Economic growth seems to be taking hold, and the Swiss National Bank has been quiet in the currency markets, letting the franc appreciate. The SNB sold francs last year in order to hold down its appreciation versus the euro, but they seem to be willing to accept a higher franc given the recent economic data.
“With the Greek debt problems continuing to keep the euro volatile, investors may be wise to look at the Swiss franc as an alternative.”
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