Euro vs Swiss franc Drop september 6 2011

Indonesia stock info - Euro vs Swiss franc Drop september 6 2011 - EUR/CHF Daily Fundamental Analysis for September 06, 2011 ; The euro fell for a fifth day against the Swiss franc before a report forecast to show German factory orders declined in July, adding to concern that the region's debt crisis will curtail the economic recovery.

The 17-nation euro weakened to a one-month low versus the greenback before Finland's Finance Minister Jutta Urpilainen meets today in Berlin with her German and Dutch counterparts to discuss a Finnish demand for collateral. The franc strengthened against all of its 16 most-traded peers as Asian shares fell after European stocks slumped and before data that economists said will show U.S. service-sector growth slowed, boosting demand for the currency as a haven.

"The euro is being sold because of concern about Europe's economic slowdown and its debt crisis," said Kengo Suzuki, manager of the foreign-bond department in Tokyo at Mizuho Securities Co., a unit of Japan's third-largest listed bank. "Stock drops boost risk aversion, triggering buying of haven currencies such as the Swiss franc, yen and dollar."

The euro weakened 0.5 percent to 1.1048 Swiss francs as of 9:23 a.m. in Tokyo from 1.1097 yesterday. The common currency fell to as low as $1.4059, the lowest level since Aug. 5, before trading at $1.4072 from $1.4098. It bought 108.27 yen from 108.40 yen. The U.S. currency fetched 76.93 yen from 76.89 yen, and 78.51 Swiss centimes from 78.72.

German orders, adjusted for seasonal swings and inflation, dropped 1.5 percent from June, when they increased 1.8 percent, according to the median estimate of economists surveyed by Bloomberg News before the release of the data today.

Another report today may show gross domestic product in the 17-nation euro area rose 0.2 percent from the first quarter, when it increased 0.8 percent, in line with an Aug. 16 estimate. That would be the slowest pace since the April-June period in 2009.

The euro weakened versus most of its major counterparts on heightening speculation the European Central Bank will halt interest-rate increases amid signs of an economic slowdown.

While all the 57 economists surveyed by Bloomberg expect the central bank to leave its benchmark interest rate unchanged at 1.5 percent at its policy meeting on Sept. 8, traders bet it will cut rates by 32 basis points over the next 12 months, compared with a 14-basis-point-decrease signaled on Sept. 1, according to a Credit Suisse Group AG index based on swaps.


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