Swiss Franc Retreats Despite Bright Economic Indicator

The Swiss Franc (CHF) retreated further against the US Dollar (USD) despite a bright economic indicator reading. The KOF Leading Indicators data showed an unexpected improvement in July, boosting confidence about economic growth.

The USD/CHF pair rallied to fresh session highs above 0.8170 on Thursday, reversing some of the ground lost on Wednesday. The US Dollar is gaining traction after investors' disappointment with the Federal Reserve's lack of guidance.

The Economic Barometer released by the Swiss KOF Economic Institute improved for the second consecutive month in July to 103.5 from a revised 102.1 reading in June. Analysts at MUFG noted that 'the long-end of the US Treasury bond market sold off last night' following Fed Chair Warsh's press conference, which failed to provide clear guidance.