The Swiss franc edged lower against its major rivals on Monday, a few days after the SNB President Thomas Jordan said that the Swiss currency is still overvalued at CHF 1.20 against the euro.
"The year 2012 is likely to be another difficult one. At CHF 1.20 against the euro, the Swiss currency is still overvalued and presents major challenges to our economy," the Swiss National Bank President Thomas Jordan said during a speech at the general meeting of shareholders on Friday.
Jordan said if the international economic developments worsen more than forecast or if the Swiss franc does not weaken further as expected, renewed downside risks for price stability could emerge. "Should the economic outlook and the threat of deflation require it, the SNB is prepared at any time to take further measures."
He said that minimum exchange rate of CHF 1.20 per euro, which was introduced on September 6, has proved to be effective so far.
The Swiss franc that advanced to more than a 2-week high of 1.2012 against the euro in Asian trading reversed direction in early European deals. The franc is presently trading at a 2-day low of 1.2021 against the euro with 1.2025/30 seen as the next likely support levels.
Retail sales in Germany increased for the first time in three months in March, the latest figures from the Federal Statistical Office showed today. The seasonally adjusted sales rose 0.8 percent month-on-month in real terms in March, following a 0.9 percent drop in February and 1 percent fall in January. Economists expected a sharper 1.1 percent rise in sales.
Annually, retail sales increased 2.3 percent in real terms following 2.1 percent gain February. Economists had forecast a 0.5 percent rise. Sales rose 2.1 percent during the first three months of 2012 compared to the same period last year.
Meanwhile, the Spanish economy returned to recession in the first quarter of 2012 as estimated by the Bank of Spain, but the rate of contraction in activity was slightly weaker than thought. The statistical office Ine said today that the gross domestic product contracted 0.3 percent quarter-on-quarter in the first quarter, compared to 0.4 percent decline estimated by the central bank last week.
Against the yen, the franc fell to nearly a 2-week low of 88.15 around 6:15 am ET. The franc-yen pair is presently worth 88.20 with 87.80 seen as the next likely support level.
The franc inched closer to the pivotal 1.48 level against the pound, its lowest level since January 6. If the franc drops below the 1.4800/05 level it would set its weakest level in more than a year.
House prices in the U.K. rose for a second consecutive month in April led by London, but price rises may flatten out going into the summer, a survey by Hometrack revealed. Home prices at national level rose 0.1 percent month-over-month in April after gaining 0.2 percent in March, the survey report said. The strongest price gain was reported in London, with a 0.3 percent increase.
Pulling back from Friday's fresh 3-week high of 0.9054 against the US dollar, the Swiss franc fell as low as 0.91 around 6:35 am ET. On the downside, the alpine unit may find target around the 0.9135 level.
Looking ahead, the U.S. personal income and spending report for March and the Chicago PMI data for April are expected in the New York morning session.
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Forex News
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.