The Swiss franc edged lower against the currencies of Europe, US and Japan in late Asian trading on Tuesday as traders await Switzerland's inflation report for February, which will be released shortly. The franc, however, edged higher against the pound due to across the board weakening of the latter.
Switzerland's Federal Statistical Office will release consumer price inflation figures for February at 3:15 am ET. The consumer price yearly inflation rate is expected to come in at 1%, the same as in January.
The Swiss franc depreciated 1.4 percent to reach a 4-day low of 83.56 against the Japanese yen around 2:00 am ET from yesterday's 13-day high of 84.73. The franc-yen pair is presently worth 83.68 with 82.8 seen as the next target level.
Japan's leading index rose for the eleventh consecutive month in January, a preliminary report from the Cabinet Office showed today. The index stood at 97.1, up from 94.7 in December. The index also stood above the consensus forecast of 96.6.
The coincident index climbed to 99.9 from 97.4 in December. The expected reading was 99.6. The lagging index also moved up considerably to 85.1 from December's 82.9.
Against the US dollar also, the Swiss franc slipped to a 4-day low of 1.0764 at this time and this may be compared to yesterday's close of 1.0734. On the downside, the Swiss currency may find support around the 1.0820 level. Currently, the greenback-franc pair is quoted at 1.0755.
The Swiss franc that hovered near yesterday's 13-day high of 1.4624 against the European currency by 1:00 am ET reversed its direction thereafter. The Swiss franc drifted lower to 1.4635 against the euro before holding steady around 1:50 am ET. The euro-franc pair is presently trading at 1.4633.
Germany's Federal Statistical Office announced that the manufacturing turnover in real terms increased a seasonally and working day adjusted 1% on a monthly basis in January, compared to the 0.8% fall in the previous month, revised from 2% decline reported initially.
On an annual basis, manufacturing turnover increased a working day adjusted 2.6% in January, after falling 5% in December, revised from 6% drop estimated initially. The manufacturing turnover increased for the first time since September 2008.
The Swiss franc, however, climbed to a 5-day high of 1.6111 against the pound around 2:30 am ET and this may be compared to 1.6175 hit late New York Monday. The pound-franc pair is presently worth 1.6118 with 1.61 seen as the next target level.
Britain's economic recovery is "broadly on track" but the path ahead is likely to be bumpy, according to Bank of England policy maker Kate Barker. In a speech delivered at the National Institute of Economic and Social Research in London, Barker said it is not yet possible to be confident in the pace of the recovery, even though some of the severe downside risks have "diminished".
An index measuring house prices in the United Kingdom was up 17 percent on year in February, the Royal Institution of Chartered Surveyors said earlier today. That was below analyst expectations for a 30 percent increase following the revised 31 percent annual increase in January. The original reading showed a 32 percent expansion.
Looking ahead, the U.K. Office for National Statistics will release its trade balance data at 5:30 am ET. The total visible trade balance is tipped to log a deficit of GBP 7 billion in January. The Non-E.U. trade deficit is seen at EUR 3.35 billion.
Turning to the U.S., Chicago Federal Reserve Bank President Charles Evans is due to speak to the NABE annual policy conference in Arlington, Virginia at 9:30 AM ET.
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