(RTTNews) - Wednesday in early deals, the Swiss franc rallied against its major rivals as uncertainties over the eurozone debt problems prompted risk-averse traders to seek safe-haven currencies. Concerns about Greek sovereign debt intensified today as rumors germinated that Athens is set for fresh elections, endangering the nation's ability to push through austerity measures. The Swiss franc touched a fresh record high of 1.23 against the euro around 6:20 am ET. This was up from yesterday's 4-day low of 1.2471. The euro-franc pair is presently trading at 1.2310. Germany's consumer sentiment is set to fall in June, survey results from the market research group GfK showed today. The overall indicator is forecasting a value of 5.5 points for June, down from 5.7 points in May. Economists were expecting a reading of 5.6 points. The Swiss franc climbed above 93.80 against the yen around 5:30 am ET, the highest level since May 5. The franc-yen pair is presently worth 93.70 and a move above the 94.50 resistance could set its strongest mark since October 2008. Japan saw a merchandise trade deficit of 463.7 billion yen in April, the Ministry of Finance said, swinging to a shortfall for the first time in three months. That beat forecasts for a deficit of 703.7 billion yen following the upwardly revised 189.4 billion yen surplus in March. Meanwhile, Japan's economy has started to move toward recovery from the tumble caused by its strongest earthquake on record, which triggered a massive tsunami and nuclear crisis, Bank of Japan governor Masaaki Shirakawa said today. Shirakawa expects the sense of recovery to be somewhat more noticeable by the second half of fiscal 2011, though he dismissed the possibility of a V-shaped recovery. Annual real GDP growth rate is projected to expand 2.9 percent in fiscal 2012, after staying at a low 0.6 percent in fiscal 2011 due to contraction in the first half. The Swiss franc also advanced to nearly a 3-week high of 1.4174 against the pound around 4:30 am ET before pulling back to near yesterday's New York session close of 1.4243. On the upside, the alpine currency may find target around the 1.4160 level. The British economy expanded 0.5 percent in the first quarter, unrevised from the preliminary estimate, data from the Office for National Statistics showed today. GDP contracted 0.5 percent in the fourth quarter of 2010. On an annual basis, gross domestic product rose at a rate of 1.8%, unchanged from the preliminary estimate. Figures matched consensus expectations. The Swiss franc appreciated by 1.6 percent to reach a 3-day high of 0.8754 against the US dollar around 5:30 am ET from Tuesday's 8-day low of 0.8895. The dollar-franc pair moved in a holding pattern thereafter and is currently quoted at 0.8764. On the upside, 0.8710 is seen as the next likely target level for the pound.

Source