The Swiss Franc strengthened in the last hour following the release of the IMF report on Europe. USD/CHF erased gains and pulled back below 0.8200 and fell to 0.8162, the lowest level since Asian hours. The pair moved further away from 0.8232 (daily highs).
The Swiss Franc also rose considerably in the last hour versus its European rivals. EUR/CHF peaked at 1.1670 but reversed and turned to the downside falling a hundred pips in less than 60 minutes. The pair retreated to 1.1555, area that lies just a few pips above today’s opening price. GBP/CHF also tumbled in the last hour, falling from 1.3267 to 1.3153 and trimmed gains.
The IMF presented a report on Euro Area policies and affirmed that Executive Directors see that the Euro debt crisis poses risks to the European and to the global recovery. They called for strong policy implementations in the programs, more efforts to restore confidence and to strengthen the economic governance.
“Directors stressed a number of essential actions. First, they urged a rapid implementation of the commitment to scale up the capacity of the European Financial Stability Facility (EFSF) and supported a more flexible use of the EFSF as a backstop for sovereign and banking problems. Second, Directors called for clarity in the approach to private sector involvement with regard to ongoing programs and in the context of the European Stability Mechanism. And third, they called for immediate measures to strengthen the financial system through adequate capitalization and a strong follow up to the stress-test.”
The IMF presented a report on Euro Area policies and affirmed that Executive Directors see that the Euro debt crisis poses risks to the European and to the global recovery. They called for strong policy implementations in the programs, more efforts to restore confidence and to strengthen the economic governance.
“Directors stressed a number of essential actions. First, they urged a rapid implementation of the commitment to scale up the capacity of the European Financial Stability Facility (EFSF) and supported a more flexible use of the EFSF as a backstop for sovereign and banking problems. Second, Directors called for clarity in the approach to private sector involvement with regard to ongoing programs and in the context of the European Stability Mechanism. And third, they called for immediate measures to strengthen the financial system through adequate capitalization and a strong follow up to the stress-test.”
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