November 28, 2011
Along with its fellow European currencies, the Swiss franc tumbled when several euro zone nations' credit ratings got downgraded last Friday. USD/CHF closed 115 pips up from its .9194 open price after hitting a high of .9331. EUR/CHF ended 47 pips up from its 1.2270 day open price.
There aren't any economic reports on Switzerland's schedule for today, which means that risk sentiment could once again dictate where the Swissy is headed. On Tuesday, Switzerland will release its UBS consumption indicator for October. Recall that the index climbed from 0.79 to 0.84 last September and, if it posts another increase for the following month, the Swissy could have a chance to bounce back.
On Wednesday, the KOF economic barometer will be released at 10:30 am GMT. This could show that the reading dropped from 0.80 to 0.66 in November, reflecting a downbeat economic outlook for the next six months based on Switzerland's current economic data. A weaker than expected reading would hint at dim economic prospects, which could be bearish for the Swissy.
Then, on Thursday, Switzerland will release its SVME PMI. This could reveal that the manufacturing industry contracted yet again in November as the index is expected to dip from 46.9 to 46.7. Again, a weak figure could be negative for the Swiss franc, so make sure you keep an eye out for the release at 8:30 am GMT.
Last but not least, the retail sales report of Switzerland is set for release on Friday 8:15 am GMT. After dipping by 0.9% in September, annualized consumer spending is expected to rebound by 1.2% in October. Watch out for the actual release because a strong figure could give the Swissy a nice solid boost.
"The only cable I watch is the pound baby."