Swiss Franc Rebounds Amid Risk-off Mood

(RTTNews) - The Swiss franc rebounded from recent lows against other major currencies in the European session on Thursday, as investor sentiment in European stock markets remained weak amidst a hardening in global bond yields.

Ten-year bond yields have increased more than a quarter percent in Germany, France, U.K., as well as Spain. The easing in crude oil prices, the momentum in tech stocks as well as toned down expectations of another Fed rate hike in October is expected to limit losses.

The Swiss franc traded lower against its other major currencies after the release of Swiss inflation data, as the data enables the Swiss National Bank (SNB) to maintain lower interest rates for a longer period of time.

The SNB is able to maintain low interest rates for a longer period of time since Swiss inflation is still mild.

Data from the Swiss Federal Statistical Office showed that Switzerland's consumer price inflation accelerated as expected in September to the highest level in just over two years. The consumer price index climbed 1.0 percent yearly in September, faster than the 0.8 percent increase in August. Moreover, this was the highest inflation rate since August 2024, when prices rose 1.1 percent.

On a monthly basis, consumer prices remained flat in September after rising 0.4 percent in the previous month.

In the European trading today, the Swiss franc rose to a 6-day high of 0.9420 against the euro and a 3-day high of 190.01 against the yen, from early lows of 0.9479 and 188.54, respectively. If the franc extends its uptrend, it is likely to find resistance around 0.93 against the euro and 195.00 against the yen.

Against the pound and the U.S. dollar, the franc edged up to 1.1031 and 0.8333 from early near 1-1/2-year lows of 1.1105 and 0.8383, respectively. The franc may test resistance around 1.08 against the pound and 0.79 against the greenback.

Looking ahead, Eurozone unemployment rate for August is due to be released at 5:00 am ET.

In the New York session, U.S. weekly jobless claims data, U.S. and Canada S&P Global manufacturing PMI reports for September and U.S. construction spending for August are slated for release.