The franc declined against most major opponents on Monday on expectations that the Federal Reserve may delay the tapering of its bond-buying program to overcome headwinds posed by the government shutdown.
Market participants expect the Fed to delay its tapering plans until such time the American lawmakers find a more permanent solution to Washington’s fiscal woes.
Traders eye the U.S. jobs report for September due tomorrow, which was delayed by 21/2 weeks because of the partial government shutdown
The franc touched as low as 1.4618 against the pound, down from last week’s close of 1.4580. If the franc slides further, it may seek support at the 1.47 level.
The franc hit a 4-day low of 0.9042 against the greenback, reversing from last week’s highest level of 0.9005 in 2 weeks. The next downside target for the franc lies around the 0.915 area.
The franc that ended Friday’s trading at 1.2343 against the euro slipped to a 4-day low of 1.2359. The franc may face support around the 1.24 level.
Germany’s producer prices declined for the second consecutive month in September, a report released by Destatis showed today.
Producer prices dropped 0.5 percent each on a yearly basis in September and August. The September decline exceeded the consensus of 0.7 percent fall.
The U.S. existing home sales for September are in focus in the New York session.