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Swiss Franc Falls Against Euro on Brexit Relief

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The Swiss franc fell to its lowest in nearly seven months against the euro on Monday as the Brexit trade deal remained in focus, while the dollar dipped after U.S. President Donald Trump signed a COVID19 aid bill, averting a government shutdown.

The Swiss franc fell 0.3 to 1.08860 against the euro, its lowest since June 8. It was unchanged against the U.S. dollar at 88.835 cents at 0903 GMT.

What we are seeing is a continuation of the pricing out of hard Brexit risk, said Ulrich Leuchtmann, head of FX research at Commerzbank in Frankfurt.

I think a lot of market participants saw Swissie as an alternative to the euro, which would have been harder affected by a hard Brexit, he said. Investors were likely to close out of such positions in the following sessions, he added.

The euro was up 0.1 1.22370, near the 2 12year high of 1.2273 touched this month.

In the United States, Trump signed into law a 2.3 trillion pandemic aid and spending package, averting a partial federal government shutdown that would have started on Tuesday.

The dollar dipped 0.3 against a basket of currencies to 90.031, its lowest in a week.

The boost to risk appetite also hurt safehaven government bonds, with 10year U.S. Treasury yields up 2 basis points at 0.95.. Germanys benchmark 10year yield was unchanged at 0.55.

Meanwhile, Britains sterling added 0.1 against the U.S. dollar to 1.3551 , continuing to keep in sight the 1.3625 mark it hit earlier this month for the first time since May 2018….

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