The Swiss franc weakened against most major currencies in the early European session on Thursday after remaining firm in the European session, as investors focused on a speech by European Central Bank President Mario Draghi for clues on stimulus measures.
The U.K.'s FTSE 100 index is currently up 0.30 percent or 1.30 points at 6,707, France's CAC 40 index is up 0.10 percent or 4.58 points at 4,418 and Germany's DAX is up 0.31 percent or 29.97 points at 9,691.
Speaking at a conference of European central bankers in Vilnius, Lithuania, ECB President Mario Draghi signaled that the bank is ready to use additional unconventional instruments within its mandate to counter risks of prolonged period of low inflation.
"We stand ready to use additional unconventional instruments within our mandate, and alter the size or composition of our unconventional interventions should it become necessary to further address risks of a too prolonged period of low inflation," he added.
In an interview with Lithuanian business daily Verslo Zinios, Draghi told that the ECB remain fully determined to counter risks to the medium-term outlook for inflation.
He also warned that heightened geopolitical tensions and inadequate policy changes are risks to the region's economic recovery.
The investors also weighed the impact of geopolitical tensions on the major European economies.
U.S. President Barack Obama on Wednesday urged the world to join the military coalition attempting to dismantle the "network of death" set up by the Islamic State, a Sunni extremist group also known as ISIS and ISIL. Obama told the United Nations General Assembly in New York that more than forty nations have now agreed to join the U.S.-led coalition against the Islamic State, which plans to establish a hardline caliphate in the regions under its control.
In the early European session, the Swiss franc fell to a a 14-month low of 0.9514 against the U.S. dollar, from an early high of 0.9174. If the franc extends its downtrend, it is likely to find support around the 0.99 area.
Against the pound and the yen, the franc slipped to more than a 3-1/2-year low of 1.5507 and an 8-day low of 114.90 from early highs of 1.5427 and 115.57, respectively. At yesterday's close, the franc was trading at 1.5447 against the pound and 115.30 against the yen. The franc may test support near 1.56 against the pound and 114.19 against the yen.
Looking ahead, U.S. durable goods order for August, weekly jobless claims for the week ended September 20 and preliminary reading of Markit's U.S. service sector purchase manager's index for September are due to be released in the New York session.
At 8:40 am ET, Bank of England Governor Mark Carney is scheduled to address a meeting at the Institute and Faculty of Actuaries General Insurance Conference in Wales.
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