The Swiss franc slipped versus the U.S. dollar on Monday after a report showing Switzerland manufacturing contracted further in February.
Swiss Purchasing Managers’ Index (PMI) plummeted to 47.3 in February, compared to 47.4 in January, lower than analysts’ forecast of 48.2.
The reported raised concerns over the health of the Swiss economy amid the daunting challenges facing its key trading partner, the eurozone.
The USDCHF recovered in February, following the tremendous fall in the pair in January after the Swiss National Bank abandoned the Swiss franc cap versus the euro.
The pair has been showing an upside direction since the SNB decision on January 15. Whilst the U.S. dollar still shows strength versus majors on expectations the Fed would hike interest rates before the year-end.