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Swiss Franc Falls Amid Risk Appetite

The Swiss franc weakened against the other major currencies in the European session on Monday amid risk appetite, after last week's impressive U.S. jobs data indicated that the world's largest economy is on the path of recovery.

The U.K.'s FTSE 100 index is currently up 0.47 percent or 31.60 points at 6,825, France's CAC 40 index is up 0.49 percent or 21.77 points at 4,432 and Germany's DAX is up 0.80 percent or 82.97 points at 10,450.

While better-than-expected job market numbers for July signaled continued growth, it is widely believed that the recent weak GDP report would keep the data-dependent Fed on a wait-and-see path when it comes to raising rates.

In economic news, data from the Federal Statistical Office showed that Switzerland's consumer prices dropped 0.2 percent on a yearly basis, but slower than the 0.4 percent decrease registered in June. This was the slowest fall since November 2014. Economists had forecast a 0.3 percent drop.

Month-on-month, consumer prices slid 0.4 percent, the first fall in six months. Prices had gained 0.1 percent in June. Prices were expected to decrease 0.5 percent.

In the Asian session today, the Swiss franc held steady against its major rivals.

In the European trading, the Swiss franc fell to nearly a 2-week low of 1.0885 against the euro, from an early high of 1.0850. On the downside, 1.10 is seen as the next support level for the franc.

Against the U.S. dollar, the Swiss franc edged down to 0.9821 from an early high of 0.9786. The franc is likely to find support around the 1.00 area.

The franc dropped to 1.2817 against the pound, from an early high of 1.2782. This may be compared to an early 4-day low of 1.2833. If the Swiss franc extends its downtrend, it is likely to find support around the 1.45 region.

Meanwhile, the franc rose to a 4-day high of 104.38 against the yen, from an early low of 103.79. The franc is likely to find resistance around the 108.00 area.

Looking ahead, Canada building permits for June and U.S. labor market conditions index for July are set to be published in the New York session.

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Forex News

Major central banks, led by the U.S. Fed, dominated the economics scene this week with some delivering histroic shifts. In the U.S., the Fed was in focus as Chair Jerome Powell announced the latest policy decision and forward guidance. In Asia, all eyes were on the Bank of Japan as markets waited to see if the central bank would exit its ultra loose monetary policy. Find out how the Swiss central bank gave a surprise in Europe and learn what is the path ahead for U.K. interest rates.

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