German Chancellor Angela Merkel and French President Nicolas Sarkozy agreeing to pursue significant improvements to the economic state of the euro zone influenced the Swiss franc's market performance on Monday, according to published reports.
Against the U.S. dollar and the Japanese yen, the franc performed strongly, according to Bloomberg. But the Economic Times reports the franc's experience against the 17-member single currency was not as strong. Following Swiss National Bank efforts to water down the
franc as recently as early September, one investment house's research note speculated the SNB is poised to intervene again.
"We remain of the view that a further upward adjustment in the ceiling is both justified and likely," states the Monday report penned by currency strategy global head Audrey Childe- Freeman with JPMorgan Private Bank in London. The report noted a limit of "1.25 has recently been mentioned as a new possible reference level, but that would still leave the Swiss franc largely overvalued. Instead, the monetary authorities may set a more ambitious target, at say 1.30."
But the Economic Times reports the euro was able to perform strongly against the franc, also attributable to Merkel and Sarkozy convening and announcing increased efforts to take on the sovereign debt scourge.
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