- The Swiss franc lost some ground against the US dollar on Monday, rallying over 1% as markets began to digest the Swiss National Bank (SNB)’s surprise policy statement last week that sent the franc loose, moving over 30% against some currencies in a matter of minutes. Many investors now believe that the franc is over-valued and this is generally why we have seen a disappointing start to the week, as well as official data showing that Swiss producer price inflation fell to 0.4% last month, compared to expectations for a 0.6% decline, after a 0.7% drop in November.
- The Australian dollar fell further against the US dollar on Monday, despite the release of surprisingly positive new motor vehicle sales data from Australia as the US dollar continues to remain strong. The Australian Bureau of Statistics said that motor vehicle sales increased by 3.0% in December, after a 0.6% fall the previous month, a positive statement from Australia but one that had little impact on the currency.
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