Daily Economic Commentary: Switzerland

Boy did the franc get tanked in yesterday’s trading! It slipped and slid during the New York session, ending the day with losses against its counterparts. USD/CHF was 146 pips higher at .9856 while EUR/CHF was chillin’ at 1.3651, knocking 88 pips out of the Swissy.

Naysayers are pointing to the first decrease in 6 months that the UBS consumption indicator sported in September as the reason for the franc’s tumble. It was reported yesterday that consumer demand decreased during the month with the index lower at 1.70 than it was in August at 1.95.

Seeing the franc’s sell-off yesterday, you may want to keep tabs on the KOF leading indicator due on Friday at 9:30 am GMT. If the report disappoints the 2.16 consensus for October, then we may just see the currency take another plunge into the bear lair. Yikes!

Zzzz… It was more thrilling to watch Frank-n’-Furter on Glee’s Rocky Horror episode yesterday than the “frank” counterpart in the pip charts! The lack of reports from Switzerland limited the franc’s moves and pushed EUR/CHF only 12 pips lower at 1.3639, while USD/CHF climbed by 54 pips to .9909.

Will today be more exciting for the Swissy? Two Swiss National Bank hotshots will give their speeches today, starting with SNB Governing Board Member Jan-Pierre Danthine in Lausanne, followed by SNB Chairman Philipp Hildebrand at 3:30 pm GMT. Will they give any details on the SNB’s future decisions?

Don’t even think of missing this one!

D’oh! The franc lost against its major counterparts yesterday on a trace of risk appetite and gloomy statements from Swiss National Bank Chairman Philipp Hildebrand. USD/CHF might have fallen by 77 pips on dollar weakness, but the franc lost against the euro and the pound, with EUR/CHF soaring by 55 pips from its open price at 1.3696.

Did the currency bulls pick up the gloomy vibes from the SNB Chairman? In his speech yesterday, Hildebrand relayed his dissatisfaction over the bank’s record-low interest rates, and said that it could have undesirable consequences like a property bubble. In fact, he mentioned that there are already signs of a bubble in the real estate market as the low interest rates encourage demand for houses. Uh-oh.

Let’s hope the KOF economic barometer at 9:30 am GMT will provide better prospects for the franc! The report is estimated to slip to an index number of 2.16 from September’s 2.21 figure, but a lower number might attract more currency bears to the land of the Swiss alps. Yikes!

The Swissy found itself holding on to the shorter end of the stick last week as it continue to fall against the Greenback. USD/CHF ended Friday at .9840, up around 90 pips from its week open price.

It looks like the combination of a bearish SNB and traders unwinding their long Swissy positions are taking USD/CHF back to parity.

Not much data from Switzerland this week, as only its CPI is due. Scheduled to come out on Thursday at 7:15 am GMT, the CPI is expected to show that the inflation rate remained at 0.3% year-on-year. If the actual figure surprises to the upside, it could provide provide support for the Swissy and prevent it from experiencing more losses against the Greenback.

The franc fell victim to the bulls rampage yesterday, as dollar strength was the name of the game. USD/CHF shot up almost 100 pips from its opening price, but failed to close above major resistance. Is it only a matter of time before we head back to parity?

The only data that was released yesterday was the SVME manufacturing PMI, which came in right as expected at 59.2. This indicates that optimism amongst manufacturing companies is up and that managers are optimistic that the manufacturing industry will continue to show signs of growth.

For today, watch out for retail sales data due at 8:15 am GMT. The report is projected to show growth in retail sales of 1.5% from levels a year ago. Watch out though, for any revisions of August’s data to show a slower growth.

“And that’s how it’s done yo!” The franc was swaggering in the pip charts yesterday as it gained on its major counterparts despite the lack of economic reports in the land of the Swiss Alps. USD/CHF dropped sharply by 122 pips at .9796, while EUR/CHF plunged to an intraday low of 1.3748 before it ended the day 32 pips lower at 1.3748.

Will the franc go for more wins today? Switzerland is set to release its retail sales report at 8:15 am GMT. A figure higher than August’s 0.1% growth might keep the party goin’ for the Swissy.

Then at 4:15 pm GMT, Swiss National Bank Board Vice-Chairman Thomas Jordan is set to take center stage in Zurich as he speaks at the Swiss Financial Institute meeting. Will we hear a few hawkish or dovish comments?

Don’t miss the opportunities to bag some pips homies!

Good news came from everywhere for Swissy bulls yesterday! Not only did they find fundamental support for their currency from the retail sales report, but thanks to the Fed’s QE2, they also benefited from USD weakness. As a result, USD/CHF plummeted from its opening price of .9795 and rested at .9707.

In September, retail sales grew a remarkable 3.8% year-on-year, much stronger than the revised 0.1% uptick in August. In the last quarter, we saw consumer sentiment improve in Switzerland, and it clearly shows in the way they spent their dough in September. They bought up a lot of food, beverages, and tobacco, causing food sales to rise 2.9%, while non-food sales climbed 5.1%.

Now let’s see if this buying spree caused a spike in inflation!

Today at 8:15 am GMT, the monthly CPI report is due. The past five months have failed to record a rise in prices, but analysts are very optimistic for October. They’re predicting a 0.6% month-on-month increase. Should results come in better-than-expected, don’t be surprised to see the Swissy extend its gains!

Nom nom nom! Swissy bulls once again had a healthy pip-meal as USD/CHF dropped sharply for the third day in a row. Despite the fact that Switzerland rolled out a weaker-than-expected CPI figure, USD/CHF continued on its southern course and fell 124 pips to land at .9584.

Markets didn’t seem to mind the soft CPI figure, which showed a mere 0.5% increase in prices instead of the 0.6% that was forecasted. I guess investors were relieved to see a positive figure at all! Like I’ve said before, the past five months have failed to record a rise in prices and this has stoked fears of deflation. It seems like an increase of any size is welcome at this point.

According to SNB Governing Board member Jean-Pierre Danthine, the central bank will be carefully watching deflationary threats. In his speech yesterday, he said that the SNB is ready to act in case the Swissy’s appreciation spurs deflation. This could be his way of saying, “Watch out for interventions!”

Nothing more to see from Switzerland today. For your daily economic data fix, head on over to the U.S., where the high-impact NFP report is due for release at 12:30 pm GMT.

The franc’s price action against its major counterparts was a hodgepodge last Friday despite the lack of reports in Switzerland. EUR/CHF leveled off to a 115-pip loss after sliding to an intraday low of 1.3440, but USD/CHF rose by 38 pips at .9621. What gives?

Maybe the franc just danced to the tune of a good ol’ tug-o-war of risk appetite as debt concerns popped up in the euro zone while the big NFP report showed an upside surprise in the markets.

The franc will have its chance at getting its own action today at 6:45 am GMT when the unemployment rate is released. Analysts are expecting the figure to go down to 3.6% from September’s 3.7% figure, but a lower number just might attract more currency bulls.

The SECO consumer climate report tomorrow at 6:45 am GMT is the only other big hit in Switzerland this week, and a figure higher than the expected index figure of 17 could inspire more franc-buying.

Don’t miss the opportunities to bag some pips this week!

To the dismay of franc bulls, USD/CHF followed up last Friday’s climb with another march up the charts as the pair rallied 39 pips for the day to end at .9663. But against the euro, they had better luck as EUR/CHF fell 62 pips and closed at 1.3406. Not too bad, eh?

Yesterday was a typical quiet day for Switzerland. The only data published was the October unemployment rate, which, as expected, held steady at an unadjusted rate of 3.5%. Adjusted for seasonal swings, this translates to a decline from 3.7% to 3.6%.

Economics nerds attribute the improvement to a rise in hiring due to increased export demand. Now that employment is picking up, maybe consumer demand and spending will follow suit!

On tap for today is the SECO consumer climate survey. The report, which is released every three months and surveys a total of 1,100 households, serves as a leading indicator of consumer spending. So at 6:45 am GMT, you may want to check and see if the actual results match forecasts for a reading of 17 after the previous period recorded a 16. A better-than-expected figure could just give the franc a boost!

Three in a row! The Swissy has yet to post a win this week as it completed its third straight fall yesterday. Dollar strength, together with poor Swiss economic data, caused USD/CHF to rise from an intraday low of .9587 and close at .9683 during the New York session.

The only report published in Switzerland was a disappointing SECO consumer climate report. The report, which measures consumer confidence over a period of three months, posted a sharp drop from the previous period’s reading of 16. Results from the last three months, which earned a reading of 7, were drastically below the expected 17.

Since this is the first big drop since last year, it has revived fears over a slump in the labor market and a slowdown in growth.

No reports coming out from Switzerland today! If you’re looking to trade USD/CHF, it would be best for you to monitor things in the U.S. Good luck out there, kids!

Make that four days in a row! Once again, USD/CHF finished higher for the day, but only after giving back some of its gains. After hitting a high at .9767, the pair slid lower to finish at .9712.

No major news was released from Switzerland yesterday, so as usual, the Swissy was subject to developments in other regions. Take note of the EUR/CHF, which has been sliding down the charts due to the recent euro weakness. Keep an eye out for any developments regarding debt problems, as the franc could stand to benefit if more news regarding this issue pops up.

Mixed trading for the franc yesterday, as it lost against the dollar for the 5th consecutive day, but managed to push slightly higher versus the euro. USD/CHF rose 41 pips from its opening price to end at .9753, while EUR/CHF closed 61 pips lower to finish at 1.3321.

With no news coming out from Switzerland lately, Swissy traded has been dictated by sentiment towards other currencies. With the dollar being the king of the currency hill and the euro sinking right now, it’s no surprise that the franc has been all over the place.

Once again, nothing coming out from Switzerland today, but watch out for German GDP and the University of Michigan consumer sentiment reports coming out today. These reports will most likely be the major factors driving price action today, so look out!

Nothing new here! Once again, the Swissy was trampled by the Greenback as USD/CHF climbed 49 pips to close at a new weekly high of .9802. That’s six in a row for those of you who aren’t keeping track!

Greenback strength, rather than Swissy weakness, was responsible for USD/CHF’s climb. Although times like these when investors have weak risk appetite usually benefit both currencies, the Greenback arose victorious over the Swissy thanks to positive U.S. economic data. Unfortunately for Swissy fans, Switzerland didn’t publish any reports to give its currency support.

Maybe they’ll have better luck in the week ahead. Today at 8:15 am GMT, we get our first taste of economic data for the week with the PPI report. The report is anticipated to show unchanged producer and import prices for the month of October after September posted a 0.1% decline.

Just in case you forgot, let me remind you that Switzerland has been struggling with deflationary threats lately. An uptick in this report would probably be welcomed by Swissy bulls since it could potentially signal future inflationary pressures.

Then at 7:15 am GMT on Thursday, we take a look at October’s trade balance data. According to experts, the surplus of 1.69 billion CHF will probably shrink to just 1.54 billion CHF. But any number lower than what was forecasted could imply weak export demand and cause the Swissy to sink lower.

Last but not least is the ZEW economic expectations report. Will we see an improvement from last month’s pessimistic reading of -27.5? We’ll have to wait until 10:00 am GMT on Thursday to find out if the Swiss still see the glass half empty!

The Swissy’s scorecard was as mixed as a Piña Colada during yesterday’s trading. It pared some of its losses against the euro when EUR/CHF closed the day 38 pips lower at 1.3374. On the other hand, it gave up 72 pips to the dollar when USD/CHF surged to close at .9860 after bottoming at .9763.

I have a feeling the Swissy could have swept wins from both its counterparts had it not been for the worse-than-expected PPI report yesterday. Tsk, tsk…

Data for October showed that producer prices continued to decline during the month, falling by as much as by 0.4% following its -0.1% reading in September. The report might have disappointed a handful of traders as analysts projected prices to have remained flat during the month.

We don’t have anything on tap for the currency today but with talks of sovereign debt keeping risk aversion at bay, we might see it continue its rally against the euro. That’s just me though. Good luck!

Swissy still ain’t got swagger! It posted its eighth consecutive day of decline against the dollar yesterday when USD/CHF closed 103 pips higher at .9962. Heck! It even lost 59 pips against the euro amid talks of sovereign debt.

So, what’s up with the Swissy?

Without any economic report to support it, the currency was left vulnerable to the dollar’s strength while positive figures from the euro zone could have cost it its loss against Fiber. Some naysayers even think that perhaps the worse-than-expected PPI report we saw earlier this week still weighed down the Swissy.

But don’t worry! Tomorrow we’ll have the trade balance report for October at 7:15 am GMT. Perhaps a better-than-expected figure will spur the Swissy into a rally. Know that economic hotshots are anticipating exports to have outpaced imports by 1.4 billion CHF during the month.

Then at 10:00 pm GMT we’ll have the results of ZEW’s survey on economic expectations where a reading higher than the -27.5 figure it printed in October will probably have a bullish effect on the currency.

Until then, it looks like we’ll just have to be on the lookout for what’s going on with the Swissy’s counterparts as our economic calendar indicate that we still don’t have any hollers from Switzerland today.

The fat lady hasn’t sung yet, so it ain’t over for the Swissy! After eight consecutive days of getting beat down by the Greenback, it finally manned up and put up a fight. USD/CHF came within 30 pips of reaching parity, but eventually dipped down to record a 33-pip slide for the day at .9928.

It would probably make more sense to attribute USD/CHF’s slide to Greenback weakness rather than to Swissy strength. After all, Switzerlanddidn’t publish any reports yesterday, and the U.S. printed a few worse-than-expected figures.

Those of you who have been itching to trade Swiss news may just get a chance to make some pips today.

At 7:15 am GMT, the October trade balance is due. Forecasts have the trade surplus contracting from 1.69 billion CHF to 1.4 billion CHF. Of course, a higher figure than this implies strong export demand and may cause the Swissy to recover more of its recent losses.

After that, we take a look at the ZEW survey, which gave a reading of -27.5 last month. The report surveys analysts and investors about their 6-month outlook for Switzerland. Clearly, they weren’t too optimistic in October, as the report printed the lowest reading in over a year. Has sentiment improved this month? Tune in at 10:00 am GMT to find out, son!

And just when you thought the Swissy has gotten its mojo back, it erases its gains against its counterparts. Sheesh! It rallied to a high of .9855 against the dollar, only to tumble to .9968 at the end of the day with a 40-pip loss. Against the euro, it lost 169 pips as EUR/CHF closed at 1.3586.

So what caused it its loss yesterday? Hmmm, I’ve gotta say it was a combo of mixed economic reports and risk appetite.

  Switzerland’s [trade balance](http://www.babypips.com/forexpedia/Trade_Balance) data for October came in at 2.1 billion CHF. This figure should have been bullish for the currency because analysts had only bet their two cents for [exports](http://www.babypips.com/forexpedia/Exports) to have outpaced [imports](http://www.babypips.com/forexpedia/Imports) by 1.4 billion CHF. 

  On the flip side, the positive vibes the market got from the positive trade report might have been offset by the third monthly decline we saw in the ZEW Economic Expectations survey. The index for November printed at -30.9 following its -27.5 reading in October. Yikes!

  Our [economic calendar](http://www.babypips.com/tools/forex-calendar/) is blank for yodel-eh-eeh-oooh’s from [Switzerland](http://www.babypips.com/school/switzerland.html)today so it might be best if you get a feel of how the market’s mood first before you bet your pips on the Swissy.

Oooh la la! Swissy’s got swagger! It managed to erase its loss against the dollar when USD/CHF ended Friday’s trading 48 pips lower at .9920. It also bagged 7 pips from the euro when rallied to close the week at 1.3576, after tapping a 2-week low at 1.3677.

Economic hollers were still absent from the Swissy’s event cupboard. But criticisms about the Fed’s monetary policy and Ireland’s debt woes were enough for the currency to rally. So make sure you’re updated on these as our economic calendar suggests that we’re in for another quiet week for the franc.

The only reports we have is the employment data due on Thursday at 8:15 am GMT. It is expected to show that the labor market employed 3.98 million people during the third quarter. We’ll also have the KOF leading indicator for November to be released on Friday and is anticipated to print at 2.1.

Go, Super Swissy! The Swiss franc put up a good fight against the Greenback yesterday, even though risk aversion was the theme for the day. After climbing to an intraday high of .9942, USD/CHF slid down to close at the .9900 handle.

Fears of debt contagion once again resurfaced and forced investors to flee to the safe-havens. Even though the Greenback made some gains over the other major currencies, the Swissy also flexed its safe-haven muscles and refused to back down.

Will Super Swissy be able to stay resilient against the U.S. dollar today when the U.S. releases a bunch of big reports? We’ll just have to wait and see!

In the meantime, Switzerland won’t be releasing any economic reports today. The only even on Switzerland’s economic calendar is a speech by SNB Chairman Philipp Hildebrand concerning the central bank’s monetary policy challenges. It’d be interesting to see what the SNB head has in mind for their future policy changes so make sure you stay tuned to his speech at 11:30 am GMT.