Daily Economic Commentary: Switzerland

[PipDiddy]

The Swiss franc lost a bit of ground to the U.S. dollar yesterday as USD/CHF ended the day at .9720, 30 pips up from its .9690 open price. What happened yesterday and will the Swiss franc be able to recover today?

Weaker than expected SECO consumer climate data triggered a Swissy selloff yesterday as the index slipped from -8 to -17. Analysts were expecting a slight improvement from -8 to -4 for July, but the actual reading showed that consumer confidence worsened significantly during the month.

There are no reports due from Switzerland today so make sure you keep close tabs on risk sentiment to figure out where USD/CHF could be headed. Good luck!

[PipDiddy]

Just like its European neighbors, the franc stumbled against the dollar in yesterday’s trading matches. USD/CHF rose 47 pips to close the day at .9766. Will the pair make it three in a row to end the week?

What can you do if good ol’ risk aversion is going against you? Make sure to pay attention to the equities markets, as this could give you the heads up on what side risk sentiment is leaning on today. If you start seeing red across the board, it might mean another day of pain for the franc today.

[PipDiddy]

It's a deadlock, ladies and gents! USD/CHF managed to end right where it started on Friday as neither the bulls nor the bears wanted to give in. The pair dipped to a low of .9749 before it closed at .9768. Which way could the Swissy be headed today?

Switzerland didn't release any major reports on Friday, which explains why USD/CHF ended back at its day open price. This week, we might see more consolidation from USD/CHF as there aren't any red flags on Switzerland's schedule again!

Only the PPI and ZEW economic expectations index are due from Switzerland this week, and these reports aren't expected to have a huge impact on Swissy movement. With that, what we should take note of are those reports and events that could affect risk sentiment for the week. Make sure you check out the rest of my daily commentaries to find out!

[PipDiddy]

No stalemate this time! The Swissy was all over the dollar yesterday as it snatched 31 pips away from its American counterpart. Will USD/CHF continue falling today?

From the looks of it, the answer to that question will depend on how the market feels about the dollar! Switzerland will only be publishing PPI data (expected to show a 0.2% decline in prices, up from a decline of 0.3%) at 7:15 am GMT, and it's likely that this report won't do much to catch the market's attention (unless it prints a huge surprise, of course).

On the other hand, the U.S. is set to release its retail sales data, and that could serve as a major mover on USD/CHF! So for those of you looking to trade the news, tune in at 12:30 pm GMT!

[PipDiddy]

The Swissy was off to a strong start against the Greenback as it managed to maintain its lead until the halfway mark of the London session. But as the New York session rolled along, the Swissy fell back and was eventually outrun by the U.S. dollar. What the heck happened?!

One of the reasons that could explain the Swissy's mid-session drop was the weaker than expected Swiss PPI. The actual figure came in at -0.3% for July when analysts were expecting a mere 0.2% dip. Another factor that caused the Swissy selloff against the U.S. dollar was stronger than expected U.S. retail sales and PPI.

The coast is clear in terms of economic releases from Switzerland today, which means that USD/CHF could be swayed by risk sentiment and U.S. data again. Bear in mind that U.S. CPI figures are on tap for today and that another round of strong figures could boost the Greenback. Stay tuned for the actual reports due 12:30 pm GMT!

[PipDiddy]

At the start of the day, it looked as though USD/CHF was gonna serve up another boring day of trading. But then action picked up in the London session as the pair made its way up the charts. To the dismay of Swissy bulls, the market ditched the Swiss currency, forcing USD/CHF to end 31 pips higher at .9775.

Sadly, the Swissy was one of the very few currencies that lost to the dollar yesterday. For now it seems as though the markets are undecided as to where they want to take USD/CHF.

We might've gotten no news from Switzerland yesterday, but today is a different story because it's due to publish its ZEW economic sentiment report at 9:00 am GMT. The last time this index came out, it printed a reading of -42.5. Keep in mind, a highly positive reading could spark a comeback for Swissy bulls, so don't miss it!

[PipDiddy]

Thanks to overall dollar weakness and a relatively better economic data, the franc was able to pump higher during the New York session. By the end of the day, USD/CHF closed 54 pips lower to finish at .9721.

The only report we saw from Switzerland yesterday was the ZEW economic expectations index, which printed at -33.3. Despite the pessimistic outlook, this was still much better than the -42.5 we saw last month. Hey, I did say relatively better right?

We could be in for more range like behavior today, as we’ve got nothing lined up for us today. Just be sure to check out my euro zone commentary to find out what data might drive risk sentiment during today’s London session.

[PipDiddy]

No data? No problem! The franc bulls barely exerted effort in boosting the low-yielding currency thanks to the dollar weakness that we saw last Friday. USD/CHF dropped by 54 pips after dipping to an intraday low of .9706.

Only the trade balance data on Thursday at 6:00 am GMT is scheduled for the Land of the Swiss Alps, so make sure you keep your eyes on the other major economies in case we see any market-moving action!

[PipDiddy]

For the EIGHTH day in a row, USD/CHF stayed within a tight range, with yesterday’s high and low separated by less than 20 pips.

With no hard reports lined up during the London and New York sessions, we should probably see the summer trend of consolidation continue on USD/CHF. If you’re the type who loves scalping, this could be an opportunistic time for you to make some pips!

[PipDiddy]

The Swiss franc tapped its inner Sylpipster Stalone and muscled its way against the dollar in yesterday's trading. Almost immediately after opening at .9726, USD/CHF dropped like a rock on the charts and closed at .9636.

There weren't any reports from Switzerland. However, rumors about the ECB putting a cap on the bond yields of peripheral euro zone nations boosted risk appetite which consequently had the Swiss franc hustlin' too.

Our forex calendar is once again blank for reports for the currency today. So, it would be a good idea to keep tabs on updates from the euro zone. I have a feeling that developments on the debt crisis would continue to dictate market sentiment. Good luck, y'all!