ND: Swiss Franc Surges To New Multi-year High Against Pound
The Swiss franc soared to a new multi-year high against the British pound during early European deals on Wednesday. The franc also rose to a new multi-week high against the euro, 6-day high against the yen and a 5-day high against the dollar.
In early trading on Wednesday, the Swiss franc climbed to a new multi-week high of 1.5078 against the euro. This may be compared to Tuesday's North American session close of 1.5162. If the franc gains further, it is likely to target the 1.472 level.
The Swiss franc advanced against the pound after hitting a low of 1.6091 by about 1:40 am ET Wednesday. The pound-franc pair that closed yesterday's trading at 1.6046 is presently quoted at 1.5892. This set a new multi-year high for the alpine currency.
The pound ticked down as Britain's Royal Institution of Chartered Surveyors said today that the house prices may fall about 10 percent next year as the country's recession deepens.
At the same time, RICS predicts property sales to rise by 10% next year. Lenders are likely to remain cautious and increasingly gloomy economic picture suggest that house prices will continue to decline in 2009, the report showed.
According to British Bankers' Association, the number of house purchases approved in the UK fell to 17,773 in November from 20,767 in the previous month. Approvals for re-mortgaging in November were almost half what they were in October and the previous six months.
The Swiss franc declined to 83.05 against the Japanese yen before bouncing back at 12:20 am ET Wednesday. Currently, the franc-yen pair is trading at a 6-day high of 83.85 with 85.5 seen as the next target level. The pair closed yesterday's New York session at 83.55.
In economic news from Japan, an index measuring sentiment among large companies fell sharply in the fourth quarter of 2008, data released by the Cabinet Office revealed today, touching its lowest score since the index started in 2004. The Q4 reading came in at a record low -35.7 for the period of October through December, after posting a score of -10.2 in the previous three months.
