BRUSSELS (dpa-AFX) - The Swiss franc weakened against other major currencies in the European session on Wednesday, despite the release of Swiss ZEW's economic sentiment showing significant improvement in June.
Data issued by the Swiss Centre for European Economic Research showed that the ZEW Economic Expectations Index increased to 10 in July, its highest rating since November of last year. This is a notable improvement from the -25 recorded in June and the -11 reading in May.
However, the SNB is not anticipated to raise its benchmark interest rate from the present 0% level in the near future, and the Swiss franc is still on the defensive amid growing predictions of Fed monetary tightening.
Investors are looking ahead to the Federal Reserve's monetary policy announcement due later in the day.
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In the European trading today, the Swiss franc fell to a 6-1/2-month low of 0.9343 against the euro and more than a 2-week low of 199.52 against the yen, from early highs of 0.9316 and 200.14, respectively. If the franc extends its downtrend, it is likely to find support around 0.95 against the euro and 198.00 against the yen.
Against the pound and the U.S. dollar, the franc edged down to 1.0905 and 0.8205 from early highs of 1.0865 and 0.8169, respectively. The franc may test support around 1.09 against the pound and 0.83 against the greenback.
Looking ahead, U.S. MBA mortgage approvals data and U.S. EIA crude oil inventories data are slated for release in the New York session.
At 2:00 pm ET, the U.S. Federal Reserve (Fed) is also expected to make its monetary policy announcement. The Fed expect to maintain its interest rates at 3.75 percent.
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