Swiss Franc Weakens Against Majors Amid Inflation Data Early Friday, Friday, June 01, 2007 3:13:17 AM

The Swiss Franc showed weakness against the other major currencies during the early hours on Friday in New York. The Swiss consumer price index data for the month of May was released at 1:45 am ET. Ahead of the release, the Franc showed a mixed performance. While the Franc trended higher versus the Yen, it dropped against the dollar. On the other hand, the Franc moved sideways against the euro and the Cable. However, amid the release, the major Swiss Franc pairs lost ground. The German April retail sales data which was also released during the session weakened the Franc further against the euro.

Swiss Consumer Price index rose 0.2% on month in May and it gained 0.5% on a yearly basis. The CPI numbers for May came in line with economists` expectations.

The traders are now looking for the Swiss SVME purchasing managers index for May and the Euro-Zone April unemployment rate.

The US April personal income and spending, unemployment rate and the average hourly earnings-both for the month of May, pending home sales for April, ISM Manufacturing survey and the university of Michigan`s consumer sentiment survey for May are scheduled for later in the morning.

The Swiss currency moved sideways against the US dollar until about 10:00 pm ET Thursday. The Franc then slipped slightly but it bounced back within one and half hours. However, at about 1:00 am ET on Friday, ahead of the release of the Swiss May CPI data, the Franc started to trade lower. The Franc edged further lower following the release and traded at 1.2279 against the dollar as of 3:10 am Eastern Time.

Late Thursday in New York, the Swiss Franc traded in a tight range versus the euro. The Franc lost ground by about 1:45 am ET and this was amid the release of the Swiss May CPI data. The German April retail sales which was also released during the session weakened the Franc further. As of 3:10 am Eastern Time, the Franc was quoted at 1.6502 against the euro.

Against the British currency, the Swiss Franc drifted higher on late Thursday evening in New York. After fetching a high of 2.4236 at 8:45 pm ET, the Franc lost some pips and then moved sideways. The pair extended the same trend until the Swiss inflation data was released at 1:45 am ET Friday. Following the release, the Franc ticked down and collected 2.4291 against the Cable as of 3:10 am Eastern Time.

The Swiss Franc showed choppy trading versus the Japanese Yen during the late hours on Thursday. However, the pair made some advances at about 12:30 am ET Friday and hit as high as 99.49 after about an hour. Soon after, amid the release of the Swiss CPI data for May, the Franc gave back the gains completely and lost ground further. As of 3:10 am Eastern Time, the pair was worth 99.29.

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