Swiss franc slides to multi-month lows v dollar and pound after retail sales data

The Swiss franc has fallen near a three-month low against the dollar and four-month trough versus the pound on 16 July after negative surprise in data intensified concerns about fundamental weakness of the economy.

USD/CHF jumped to 0.9584, its highest since late April, breaking through the 0.9545 resistance. The pair was at 0.9519 at the close on 15 July.

Data from the Swiss Federal Statistics office showed on 16 July that real turnover in the retail sector adjusted for sales days and holidays fell by 1.8% in May from a year earlier. This compares to the 1.6% rise in April.

GBP/USD rallied to 1.4960, its highest since mid-March, from the previous close of 1.4890. The cross had broken the key resistance of 1.4835 on 16 July.

Bank of England governor Mark Carney and Federal Reserve chair Janet Yellen have commented recently that the time to increase rates is coming closer.

Yellen's remarks have weakened the euro broadly, helping the franc make some gains against the single currency. EUR/CHF slipped to 1.0405 from the close on 15 July of 1.0422.

In the afternoon in Europe on 16 July, the euro continued to slide despite European Central Bank president Mario Draghi sounding confident about the economy.

He said that downside risks to the economy have been contained due to policy decision and FX developments. He added that inflation will rise towards the end of 2015.

The ECB will continue to act with the assumption that Greece will continue to be a part of the eurozone, Draghi said.

EUR/USD continued to slide and traded as low as 1.0862 immediately after Draghi's press meeting, while strengthening the dollar further.

The USD index has risen to its day's high at 97.75, which is just three points above from a three-month high.