Daily Economic Commentary: Switzerland

The lack of market-moving data kept USD/CHF inside a tight 50-pip range yesterday. The pair closed the day at .9433, just 10 pips higher from its opening price. The result was a nice little indecisive “doji” candle on the daily chart.

Switzerland’s economic calendar is empty today, but that doesn’t mean that we won’t see any action! Pay attention to the U.S. data scheduled for release at 1:30 pm GMT later, as they will determine whether USD/CHF’s range will remain intact or not!

Good data and risk aversion is all the Swissy needs to run up the charts! Thanks to positive KOF economic barometer numbers and the decline of risk appetite, the Swissy was able to take down its major counterparts. EUR/CHF recorded an 82-pip slide to 1.2818 while USD/CHF dropped 38 pips and landed at .9419.

Generally speaking, the environment last Friday was very conducive to a Swissy rally. With all eyes on the unrest in Egypt, risk sentiment turned sour and investors went back to their risk-averse ways. Of course, whenever this happens, safe havens such as the Swissy tend to be on the receiving end of the gains.

Swissy buyers also found further support from a better than expected KOF economic barometer reading. Forecasts had the index falling from 2.11 to 2.09, but instead, January earned a reading of 2.10. Now, that ain’t exactly much to celebrate over, but keep in mind, this number is still above expectations!

We’ve got another potentially light week ahead of us in Switzerland. The report to keep an eye on this week is the retail sales report due on Tuesday at 8:15 am GMT. Don’t be surprised to see a strong figure for December. Analysts say we’ll probably see growth pick up from 1.8% to 2.6%.

You may also be interested in catching manufacturing PMI data at 8:30 am GMT. Forecasts have this report printing a drop from 59.6 to 59.3.

Last but not least, we have Switzerland’s trade balance due on Thursday. Most are expecting the trade surplus to widen from 1.79 billion CHF to 1.97 billion CHF. But stay on your toes because an upside surprise could imply strong exports and send the Swissy soarin’!

The Swissy was bullied into the bear lair yesterday as the absence of economic reports made it a victim to market sentiment. It lost 27 pips to the dollar when USD/CHF closed at .9441 and 133 pips to the euro as EUR/CHF ended the day at 1.2925.

But don’t worry! Today at 8:15 AM, we’ll have Swizerland’s retail sales report on tap. Analysts are expecting consumer spending to have picked up during the month by 2.6% following the 1.8% growth we saw in October.

Then at 8:30 am GMT, we’ll see how businesses fared in January with the manufacturing PMI. A 59.3 reading is anticipated for the month.

Better-than-expected figures will probably be bullish for the Swissy, so keep an eye out for 'em!

The Swissy’s scorecard in yesterday’s trading was as mixed as Cyclopip’s Groundhog Day breakfast burrito! It won against the dollar when USD/CHF closed 89 pips lower at .9353. On the other hand, EUR/CHF ended the day 9 pips higher at 1.2934.

Perhaps the currency could have won against both counterparts if yesterday’s retail sales report didn’t disappoint the market. It was reported that consumer spending contracted by 0.4% in November after posting a 1.8% uptick in October. Analysts were expecting sustained growth with the forecast up at 2.6%.

On the other hand, manufacturing activity picked up during the month. The SVME manufacturing PMI for January came in at 60.5 and topped both the 59.3 consensus and its 61.2 reading for December.

Luckily for the Swissy, traders unwound their long dollar positions when news of easing tensions in Egypt got out. But I wonder if it will have lady luck on its side today given that we don’t have any economic data on tap from Switzerland.

Tomorrow though, at 7:15 am GMT, we’ll have the trade balance report for December. If you’re planning to root for the Swissy, keep your fingers crossed for a figure higher than the 1.97 billion CHF forecast!

After dominating the dollar the past couple of weeks, the Swissy decided to give its American counterpart a break. Lack of economic data from Switzerland allowed USD/CHF to rise 48 pips to .9401.

In a few hours, Switzerland’s trade balance for December will be due. Forecasts are for its trade surplus to shrink slightly from 1.79 billion CHF to 1.72 billion CHF. Be sure to catch the details of this report at 7:15 am GMT. Often times, the underlying stats are more important than the headline figure as they can reveal important details about the country’s exports and imports.

Keep in mind, there are times when the Swissy doesn’t react to economic data, so you may want to continue monitoring risk sentiment today. If the unrest in Egypt turns violent, it may cause investors to become risk averse, which could lead to a Swissy rally.

And once again, the Swissy’s scorecard in yesterday’s trading was as mixed as a bag of M&Ms. USD/CHF closed 56 pips higher from its opening price at .9456 while EUR/CHF was down 93 pips at 1.2889 at the end of the day.

It was reported that Switzerland’s trade surplus narrowed in December to 1.28 billion CHF. Analysts had predicted exports to have outpaced imports by 1.72 billion during the month, but noooo…

Aside from the roster of positive data from the U.S., this was probably one of the reasons why the Swissy lost to the dollar. It probably might have ended up with a loss against the euro too if it wasn’t for dovish comments from ECB President Jean-Claude Trichet.

With that said and given that we don’t have economic hollers from Switzerland today, make sure you keep tabs on what we have on tap for the Swissy’s counterparts. Good luck y’all!

The Swissy got a bad Rotten Pip-tato review for Friday’s trading as the lack of economic reports from Switzerland left it at the mercy of its counterparts. It lost 92 pips to the dollar as USD/CHF closed at .9546, while EUR/CHF traded higher almost as soon as it opened at 1.2890 and ended the week at 1.2971.

With only a couple of tier 2 economic report on tap this week, it looks like the Swissy bulls will have to rely on market sentiment to help it rally against its counterparts.

On Thursday at 6:45 am GMT, the SECO Consumer Climate report for November to January will be released. The index is anticipated to come in at 11, higher than its previous reading of 7. Then at 8:15 am GMT, Switzerland’s CPI report for Januarywill be on tap. Analysts have predicted it to show that inflation was still on the down low with the forecast at -0.1%.

Until we get our hands on them, we can tune in to the country’s unemployment rate due tomorrow at 6:45 am GMT. The rate of joblessness is seen to have been lower at 3.5% in January than it was in December at 3.6%.

If you’re planning to go long on the Swissy make sure you stay tuned for better-than-expected figures!

Did traders take a long weekend at the Swiss Alps? Looking at yesterday’s trading on USD/CHF, it sure looks like it! The pair traded within a tight range of less than 70 pips, eventually closing at .9556, 20 pips lower for the day.

Today we’ve got some data coming out in the form of the Swiss unemployment rate due at 6:45 am GMT. Word is that the rate remained steady at 3.5%. Still, I doubt that this report will have any significant effect on Swissy trading.

Instead, keep an eye out for the monthly [German industrial production](Did traders take a long weekend at the Swiss Alps? Looking at yesterday’s trading on USD/CHF, it sure looks like it! The pair traded within a tight range of less than 70 pips, eventually closing at .9556, 20 pips lower for the day. Today we’ve got some data coming out in the form of the Swiss unemployment rate due at 6:45 am GMT. Word is that the rate remained steady at 3.5%. Still, I doubt that this report will have any significant effect on Swissy trading. Instead, keep an eye out for the monthly German industrial production report, which will be released at 11:00 am GMT. Expectations are for a 0.2%, but given yesterday’s poor German factory orders report, I wouldn’t be surprised if we see today’s report follow suit and show a decline. If that happens, could we see a run of risk aversion that will send EUR/CHF lower?) report, which will be released at 11:00 am GMT. Expectations are for a 0.2%, but given yesterday’s poor German factory orders report, I wouldn’t be surprised if we see today’s report follow suit and show a decline. If that happens, could we see a run of risk aversion that will send EUR/CHF lower?

Despite the unemployment report coming in just as expected at 3.5%, the Swissy still found itself trailing behind the Greenback yesterday. After it had opened the day at .9555, USD/CHF rose 78 pips to close the day at .9633.

The reason behind USD/CHF’s rise was undoubtedly the surprise 25 basis point interest rate hike from China. Take not that the primary purpose of interest rate hikes is to tame inflation, but as a side effect, they also tend to slow down economic growth. With China being a major player in global economic recovery, any belt-tightening from them could negatively affect growth in other nations as well.

No important news event on Switzerland’s economic calendar today so expect a relatively quiet day for the Swissy.

Without any economic yodels from Switzerland, the Swissy continued to tank against the euro, losing 26 pips in yesterday’s trading. Good thing it was able to end the day with a win from the dollar as USD/CHF closed at .9578 after hitting a high of .9662.

But don’t fret! Today won’t be another snoozer with a couple of tier 2 reports on deck!

First up at 6:45 am GMT is the SECO consumer confidence index. It is expected to show that our Swiss peeps have become more confident about their financial conditions with the figure for November to January seen at 11, up from its previous reading of 7.

Then at 8:15 am GMT, the CPI report for January will be released. However, unlike the aforementioned report, it seems like analysts aren’t too giddy about inflation. They expect prices to have declined by 0.1% after being flat in December.

If you’re planning to bet your pips on the Swissy, make sure you watch out for better-than-expected-figures as these may just spur the currency into a rally!

KA-BLAM!!! The franc got clobbered by the dollar and the euro yesterday when Switzerland released its less-than-legendary economic report. USD/CHF rocketed by 120 pips to .9698, while EUR/CHF gained by 29 pips to 1.3155.

It seemed that the franc bears pounced on the country’s -04% CPIreading in January, which is a lot lower than December’s flat growth figure. This signaled that price pressures are easing up for the Swiss economy, which gives the Swiss National Bank less motivation to hike its interest rates. Uh-oh.

Meanwhile, the bulls shrugged off the SECO consumer climate report that printed an index reading of 10 from its last reading of 7. Since a number above 0.0 means optimism for the economy, the larger figure might have limited the franc’s losses.

No reports are scheduled for release in Switzerland today, kids, but keep close tabs on any reports that might affect the low-yielding franc!

Switzerland’s board was as empty as The Last Airbender’s cinemas in 2010, so the franc moved to the groove of risk appetite in markets. Strong dollar demand pushed USD/CHF 34 pips higher at .9732, but EUR/CHF ended the day at a draw at 1.3184.

We’ll probably hear more crickets from Switzerland this week as only the ZEW economic expectations on Thursday at 10:00 am GMT will be released. The data clocked in at an index number of -18.4 last January, so a number closer to 0.0 might mean that Swissy investors are feeling more love for the land of the Swiss alps.

Happy trading, mi amigos! Watch risk sentiment closely, as it will most likely move the franc!

The Swissy was lookin’ fly during yesterday’s trading despite the lack of economic reports from Switzerland. USD/CHF swan-dived to its closing price of .9699 as soon as it opened at .9748 while EUR/CHF ended the day 88 pips lower at 1.3083.

And so, with our economic calendar still blank for the Swissy until Thursday, when the ZEW economic expectations report for February is released, keep an ear out for what’s happening with its counterparts. You may also want to gauge market sentiment while you’re on it. Remember that the currency usually rallies in times of risk aversion. Good luck!

Ta-daaa! The franc performed a magic trick in the charts yesterday by gaining on both the euro and the Greenback despite the lack of economic reports from Switzerland. USD/CHF fell by 27 pips to .9672, while EUR/CHF also dropped by 42 pips to 1.3040 after reaching an intraday high of 1.3139.

Oh okay, maybe risk aversion in markets and a bit of anti-dollar sentiment factored in the franc’s victory against its major counterparts, but wouldn’t it be cooler to think that franc bulls can do magic?

Anyway, the boards are still empty in Switzerland today, so keep your eyes on any report that might affect risk sentiment! The low-yielding franc usually benefits from risk aversion, so stay sharp!

Whooo! No reports were published from Switzerland yesterday, but the franc bulls just went with risk appetite flows and pushed the franc higher in the charts. Hmm, is it because they’ve watched Jennifer Aniston (who wouldn’t?) and my bro Adam Sandler last weekend in “Just Go With It?” EUR/CHF plunged to 1.3016 after hitting an intraday high of 1.3129, while USD/CHF reached a high of .9740 before capping the day 78 pips lower than its open price at .9594.

Only the SNB Chairman Philipp Hildebrand took the pip stages yesterday when he talked about how rising commodity prices have increased inflation pressures. Don’t get too hawkish though, since he also mentioned that the franc’s strength is currently shielding the Swiss economy to a degree and that raising interest rates while the Swiss economy is weak would be a “lethal combination.”

The land of the Swiss Alps will release its first and last economic report for this week with the ZEW economic expectations at 10:00 am GMT. The index on investors and analysts clocked in at -18.4 last January, but a reading closer to 0.0 this time around might boost the franc across the charts.

Winner, winner, Swissy, dinner! With tempers flaring up in the Middle East, traders turned to the franc, boosting it up against its major rivals. Both EUR/CHF and USD/CHF close 100 pips lower to finish the day at 1.2922 and .9494 respectively.

The franc benefitted from risk averse moves yesterday, as Iran sent a couple of warship up the Suez Canal, angering the Israeli government. In addition, workers have also gone on strike. Take note that the water passage is extremely important for trade and if tensions continue to rise, it could spark a strong run of risk aversion, which could continue to boost the franc.

On the local front, the ZEW economic expectations report came in at -17.2. While this still indicates a pessimistic outlook by local investors, it does represent a slight improvement from the previous month’s score of -18.4.

Can the franc make it a clean sweep? Or after four days of gains, is it time for a retracement? No data coming out today, but keep an eye on the news – you never know what may happen!

And just like that, the Swissy recorded a perfect week! Once again, dollar weakness helped USD/CHF slide further down the charts, closing the week .9498. For those of you keeping count, that’s a 250 pip drop for the entire week!

With yet another ECB member calling for higher interest rates, higher yielding currencies romped all over the dollar. While this did benefit the Swiss franc, although it did lose out a bit to the euro. Watch out for more comments in coming weeks, as this could affect the dynamic between the euro and franc.

Looking ahead, we’ve got some medium impact reports coming out through the week.

We’ve got trade balance figures for Tuesday, the producer price index for Wednesday, employment data on Thursday, and the KOF economic barometer report on Friday.

Personally, I’m really looking forward to the PPI report.

Given that inflationary concerns are the current theme in the market, if we see that producer prices rise higher than expected, it may just spark rumors that the SNB will consider raising rates as well.

The boards were empty in the Land of the Swiss Alps yesterday, but that didn’t keep franc bears from getting any action! The franc skidded against the euro and the dollar, with USD/CHF moving 35 pips higher at .9471. Meanwhile, EUR/CHF reached an intraday high of 1.2978 before capping the day at 1.2953.

Will today’s Swiss reports wave a red flag to the currency bulls? The day will start at 7:00 am GMT when the UBS consumption indicator report is released. The data clocked in at 1.84 last January, but a higher number in February could bring back some pip lovin’ to the franc.

Also due at 7:00 am GMT is Switzerland’s trade balance report. A trade surplus of 1.26 billion CHF was printed in December, but a higher surplus in January might signal healthier demand for Swiss exports.

Stay sharp on your trades today, kiddos!

The Swissy was a beast on the charts yesterday! Amidst mixed economic feedback, it was able to rip through its major counterparts as risk aversion seized the markets. USD/CHF and EUR/CHF continued their downtrends as they dropped 84 pips and 136 pips, and closed at .9387 and 1.2817, respectively.

No doubt, the Swissy was the top dog yesterday. Due to turmoil in Libya, Moody’s downgrade of Japan’s debt rating, and the earthquake in New Zealand, it was once again on the receiving end of safety flows.

On the domestic front, it also received a bit of a boost. Yesterday, we learned that Switzerland’s trade surplus expanded from 1.26 billion CHF to 1.96 billion CHF in January. According to the trade balance report, exports picked up another 4.3% after December’s 4.4% increase. Likewise, imports also showed an improvement from the previous month’s 4.1% decline by recording a 0.3% rise.

Unfortunately, the UBS consumption indicator took a bit of steam off the bullishness of the trade balance report as it printed a decrease from 1.829 to 1.676. This drop isn’t exactly what you’d like to see from a report that gauges consumer spending, but at least the index is still hanging above its long-term average of 1.5.

On the menu today, Switzerland PPI! Analysts say producer and import prices probably ticked up 0.1% in January, following the 0.3% rise in December. Now remember, deflation has been a pain in the neck for Switzerland for a while now, so a strong reading in this report would probably make a lot of Swissy bulls happy.

Y’all better get out of the way because these Swissy bulls ain’t stoppin’! Amidst a softer PPI figure, traders continued to buy up the Swissy, pushing USD/CHF 52 pips lower to end at .9335.

Analysts were right on the money when they predicted a 0.1% rise in producer and import prices. Even though this month’s PPI figure is softer than the 0.3% increase we saw last month, it had little impact on the Swissy.

Actually, it’s the other way around: the Swissy has been having an impact on PPI! Apparently, its recent strength has been shielding Switzerland from rising commodity prices, keeping PPI in check.

Coming soon to an economic calendar near you… Switzerland employment data!

Later at 8:15 am GMT, our homeboys in Switzerland will be revealing the results of their last employment count. The employment level report, which surveys the number of employed individuals during the last quarter, is expected to tick higher from 4.08 million to 4.10 million. As always, be on the lookout for any upside surprises that may boost the Swissy to new heights!