2008.12.1604:18:00UTC+00Swiss franc soars to new multi-week high against US dollar

During early deals on Tuesday, the Swiss franc climbed to a new multi-week high against the US dollar. The franc also showed strength against the currencies of Europe and UK, while edged down against the Japanese yen.

The Swiss Federal Statistical Office said today that industrial production decreased 5.2% in the third quarter from the second quarter. The decrease was steeper than a 2.3% fall economists predicted. Meanwhile, the statistical office upwardly revised second quarter growth to 9.3% from 8.9%.

Against the US dollar, the Swiss franc edged higher to 1.1547 at 2:55 am ET Tuesday. This set the highest point for the franc since November 3, 2008. The dollar-franc pair that closed Monday's North American session at 1.1597 is currently trading at 1.1559.

The Swiss franc traded higher against the European currency during Tuesday's early deals. At 4:00 am ET, the franc reached a high of 1.5792 against the euro, compared to 1.5874 hit late New York Monday.

The French statistical office INSEE said today that consumer price annual inflation slowed to 1.6% in November from 2.7% in October. Economists had expected annual inflation to ease to 1.7%. Core annual inflation was 1.9% during the period.

The Germany's Federal Statistical Office announced today that the employment in manufacturing sector increased 2% year-over-year to 105,700 persons in October. At the same time, the number of hours worked was up 1.4% to 736 million.

Against the British pound, the Swiss currency traded higher during early deals on Tuesday. The franc that closed Monday's New York deals at 1.7754 against the sterling climbed to 1.7603 at 4:00 am ET.

The franc showed weakness against the Japanese yen during Tuesday's early trading. At 2:35 am ET, the franc-yen pair touched a low of 77.85, compared to Monday's closing value of 78.22. The pair is currently quoted at 78.15.

At 4.30am ET, the Office for National Statistics is set to issue the UK consumer price data. Annual inflation is expected to slow to 3.9% in November from 4.5% in October. Month-on-month, consumer prices are predicted to fall 0.3% in November.

Thereafter, the employment details are due from Eurozone. Employment in the EU15 had increased 0.2% sequentially in the second quarter and climbed 1.2% on a yearly basis.

From US, the consumer price index for November is scheduled to be released at 8:30 AM ET. The consensus estimates call for a 1.3% decline in the consumer price index, but a 0.1% rise in the core consumer price index that excludes food and energy. The other economic reports that could have an impact on dollar during New York session are housing starts and permits which are also scheduled at the same time.

At 2:15 am ET, the Federal Reserve is scheduled to announce its monetary policy for the month. The Fed is most likely to cut interest rates by at least 50 basis points to 0.5%, as it faces the prospect of battling recession domestically and the slowing growth abroad.

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