2012.03.2908:08:00UTC+00Swiss Franc Weakens Against Most Majors

The Swiss franc was trading mostly lower on Thursday amid concerns about the strength of world's biggest economies, the US and China. Caution prevailed ahead of some key risk events in the coming sessions also weighed on sentiment.

European finance ministers' meeting is taking place in Copenhagen tomorrow. Reports suggested that the European finance ministers are willing to increase rescue funds when they meet tomorrow.

Latest macroeconomic data from the eurozone was not so optimistic, with the results of a survey being conducted by the European Commission revealed that the regions economic sentiment index fell to 94.4 from 94.5 a month ago. The reading was below the consensus forecast of 94.5.

The decline was mainly driven by decreasing confidence in the industry and construction sectors. By contrast, confidence increased among consumers and in the services and retail trade sectors.

Industrial confidence worsened to -7.2 in March from -5.7 in February. Economists were forecasting it to fall to -5.8. Confidence in the construction sector dropped to -26.5 from -24.6 a month ago.

Meanwhile, the unemployment rate in Germany declined in February, data released by both the Federal Statistical Office and the Federal Labor Agency showed today.

According to the Federal Statistical Office report, the unadjusted unemployment rate fell to 5.9 percent in February from 6.3 percent in January. In February 2011, the jobless rate was 6.6 percent.

Data from the Federal Labor Agency showed that Germany's unemployment rate declined to 6.7 percent in March from 6.8 percent in February. Economists had forecast the jobless rate to remain steady at 6.8 percent for a third consecutive month.

Moving well of yesterday's fresh 2-week high of 1.4369 against the pound, the Swiss franc fell as low as 1.4437 before holding steady around 5:50 am ET. On the downside, the franc may find support around the 1.4480 level in the near-term, at which the 100-day SMA lies in the pair.

U.K. house prices declined unexpectedly in March, pushing the annual rate into negative territory for the first time in six months, data from Nationwide Building Society showed today. House prices dropped 1 percent month-on-month in March, reversing the 0.4 percent increase in February. Economists were expecting an increase of 0.2 percent for March.

Extending its previous session's downtrend, the franc fell to a 6-day low of 90.47 against the yen around 7:00 am ET. The franc-yen pair is presently worth 90.56 with 90.30 seen as the next likely support level.

Retail sales in Japan climbed a seasonally adjusted 2.0 percent to JPY 10.773 trillion in February compared to the previous month, the Ministry of Economy, Trade and Industry said today. That beat forecasts for a flat reading following the 3.1 percent increase in January.

On an annual basis, retail sales surged 3.5 percent - again topping forecasts for a gain of 1.4 percent after rising 1.8 percent in the previous month.

The Swiss franc also tested yesterday's 2-day low against the US dollar, slipping to as low as 0.9082 before leveling off around 7:00 am ET. On the downside, the alpine unit may find target around the 0.9140 level.

Against the euro, the franc held steady in early deals on Thursday, moving in a tight range of 1.2055 and 1.2060.

Looking ahead, the U.S. weekly jobless claims report for the week ended March 24 and the final estimate of the fourth quarter GDP are expected in the New York morning session.

Market is also keeping a close eye on speeches by a number of Fed officials, including the Federal Reserve Chairman Ben Bernanke in the North American session.