EUR/CHF fell to a two-month low at 0.9303.

BANK OF ENGLAND'S monetary policy committee member MANN said the Bank must clearly communicate its reaction function; if it fails to act, both policy and CPI expectations would shift.

Sumitomo Mitsui DS Asset Management sold its entire holding of French government bonds and reallocated proceeds mainly into German bunds and some short-term Japanese government bonds, citing concern over France’s fiscal position. Eurozone sovereign risk premia jumped on Thursday as market concern over French fiscal and political stress spread; U.S. Treasuries and German bunds rallied while French and Italian spreads widened. Shinji Kunibe, chief portfolio manager for global fixed income at Sumitomo Mitsui DS, said French paper had offered relatively attractive carry but recent developments prompted the full divestment, and that Japan’s stepped-up market communication provided greater reassurance compared with France.