CHF exchange rate did fall against all the major currencies, including Euro, after the central bank announced surprisingly cut interest rates to “as close to zero as possible,” in an attempt to stop rising of CHF exchange rates against all other currencies. According to the Swiss National Bank the Franc is “massively overvalued”. Because of that EUR exchange rate did rise more than 2% against the CHF.

Another reason for such improvement in EUR exchange rate is because of some positive Euro-zone economic data,which showed that retail sales increased in June by 0.9 percent from May.But, the rally of Euro exchange rate could be brief, as concerns over Euro-zone continue to creep back into investors’ collective mind.

However, the positive economic data did remove some concerns about possibility that Spain and Italy could be the next victims of the EMU zone debt crisis, as the European Commission spokeswoman already announced that it would not provide help to either country in case of a debt crisis similar to the one in Greece.

Euro exchange rate also improved against US dollar, even after debt ceiling agreement between Democrats and Republicans in United States.It seems that most participants in the market are still using wait-and-see approach when considering to move back to US dollar.

In the time of writing this report 1 Euro can be bought for 1.4308 US dollars, 110.00 Japanese Yens and 1.0970 Swiss Francs.

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