EUR/CHF will continue to move lower in the following days

The pair will continue to move lower in the following days towards its July 2015 low. The EU’s three (3) largest economies – Germany, France, and Italy – posted disappointing figures for their Manufacturing Purchasing Managers Index (PMI) reports. All of them posted below 50 results which indicates an economic contraction. The disappointing results further add to the pessimism of investors. This was after Germany, France, and Italy also posted a zero and negative GDP growth rate for the fourth quarter of 2019. Meanwhile, as the EU economy plummets and coronavirus hunts the global market, Switzerland’s currency is one the rise. As a safe-haven asset, Swiss franc has been the ideal investment for investors who are wary of global economic uncertainty. Its appeal further increased as the Japanese yen loses its safe-haven status. This was after the country posted negative GDP growth which might send it into recession.