The Swiss franc slipped against its major rivals in early European deals on Monday, as demand for safe-haven assets faded after Greece secured deal for a four-month extension of its bailout funding program on Friday, ending weeks of uncertainty about the country’s future inside the currency block.
The temporary economic lifeline would help Greece avoid an economic crash out and bridge the time for discussions on a possible follow-up arrangement to bring back the country to a financial stability.
After the meetings in Brussels, Greece finance minister Yanis Varoufakis has pledged to honor all debts and continue with painful reforms. Greece’s new government will present a first list of reform measures today, which would be assessed and if found sufficient, could be the catalyst for a successful conclusion of the review.
Data from the Swiss National Bank showed that sight deposits at the central bank for the week ended February 20 were 382.97 billion francs, down from 384.92 billion francs a week earlier.
The franc that ended last week’s deals at 1.0658 against the euro and 0.9371 against the greenback slipped to 1.0768 and 0.9484, respectively. The next possible downside target for the franc may be located around 1.2 against the euro and 0.96 against the greenback.
The franc slipped to 125.64 against the yen and 1.4596 against the pound from Friday’s closing quotes of 126.66 and 1.4399, respectively. If the franc extends slide, 124.00 and 1.475 are seen as its next support levels against the yen and the pound, respectively.
Looking ahead, U.S. existing home sales data for January is set to be published in the New York session.
At 8:45 am ET, European Central Bank Board member Yves Mersch takes part in a panel discussion on “The Benefits to Achieving a Capital Markets Union” organized as part of a Dialogue on creating an EU Capital Markets Union organized by the London School of Economics and Political Science and Goldman Sachs.
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