Daily Economic Commentary: Switzerland

Despite a risk-averse market environment last Friday, the low-yielding franc managed to register losses against the dollar and the euro. USD/CHF rocketed by 75 pips to .9138 while EUR/CHF also inched 7 pips higher to 1.2066.

No economic report was released from Switzerland last Friday, but it weakened against the dollar, euro, and the pound thanks to continued impact of a weaker-than-expected SVME PMI from Switzerland. Of course,SNB’s Jordan’s speech about not tolerating a strong franc didn’t hurt the currency bears either!

This week we’ll probably see more action as Switzerland starts its week with a retail sales report today at 8:15 am GMT. Then, on Wednesday at 6:45 am GMT we’ll get hold of the country’s unemployment rate, followed by the foreign currency reserves report at 8:00 am GMT. Lastly, the Swiss CPI will be published on Thursday at 8:15 am GMT.

Good luck in your trades this week, homies!

It ends at three! The Swissy was able to put an end to its losing streak as it pocketed some gains against the Greenback yesterday. USD/CHF opened at .9145, dipped to a low of .9106, before closing at .9121. EUR/CHF, on the other hand, was still stuck above the 1.2050 level.

Swiss retail sales came in better than expected for January as the report showed a 4.4% annual increase in consumer spending, more than twice as much as the projected 2.0% uptick. On top of that, the December figure enjoyed a nice upward revision from 0.6% to 1.7%, reflecting how sales was much stronger than initially estimated.

Switzerland won’t be releasing any economic reports today, which means that either franc pairs would move sideways or that they’d be at the mercy of risk sentiment. Stay on your toes!

With no economic report scheduled from Switzerland, the franc fell victim to risk sentiment in markets. The low-yielding currency gained against the troubled euro with EUR/CHF slipping by 9 pips to 1.2050, but dollar strength boosted USD/CHF by 65 pips to .9187.

Let’s see if we’ll get more action from the franc pairs today when Switzerland releases its unemployment rate at 6:45 am GMT, followed by Switzerland’s foreign currency reserves at 8:00 am GMT.

Markets aren’t expecting big changes from the data coming up today, but make sure you keep at least one eye on these reports especially if you’re planning on trading the franc today!

The Swiss franc managed to stay afloat against the Greenback yesterday as USD/CHF closed 20 pips down from its .9187 open price. Meanwhile, EUR/CHF stayed stuck above the 1.2050 minor psychological level, possibly awaiting a catalyst for a breakout. Will we see one today?

Switzerland is set to release its February CPI reading at 8:15 am GMT today, and the report is expected to show a 0.2% increase in price levels for the month. This would be much higher than the January CPI reading of -0.4%, and an even higher than expected figure could give the franc another boost.

However, the bigger catalyst on deck today is the ISDA decision on Greek bond swaps. Bear in mind that Greece needs at least a 75% participation rate for it to avoid a credit default and, so far, only 58% have agreed to the bond swap. Be mindful that this event could cause wild swings in the markets so make sure you set those stops right if you’re taking any trades today!

The franc went along with the risk appetite train yesterday as it showed mixed action against its major counterparts. USD/CHF reflected the dollar weakness that followed a rally in high-yielding currencies by sliding 79 pips lower than its open price, while EUR/CHF inched 4 pips higher at 1.2056.

Investors barely noticed Switzerland’s CPI report yesterday, which clocked in a 0.3% growth for the month of February. The figure is not only higher than the previous 0.4% decline in the report, but is also a bit higher than the 0.2% rise that market analysts were expecting.

Switzerland isn’t set to release any economic report today, but word on the streets is that traders are keeping their eyes peeled for the Greek PSI announcement at 6:00 am GMT as well as the U.S. NFP report coming up at 1:30 pm GMT. Both of these reports could set the tone for today’s risk appetite, so you better not miss them!

The franc’s performance was as mixed as a bag of nuts last Friday as it lost ground to the U.S. dollar but consolidated as usual against the euro. USD/CHF rallied all the way up to a high of .9208 before ending the day at .9192 while EUR/CHF stayed stuck just above 1.2050.

Switzerland didn’t release any economic data last Friday, which means that risk sentiment and releases from other major economies played a huge role in the Swissy pairs’ price action. After all, the U.S. printed better than expected NFP data, didn’t it? That probably explains the massive dollar rally then!

This week, the producer price index report is due from Switzerland on Tuesday while its ZEW economic expectations data are set for release on Wednesday. The big event, which is the SNB monetary policy announcement, is scheduled on Thursday 8:30 am GMT. Stay on your toes then, because we might hear more jawboning from the central bank officials!

Another mixed performance from the Swissy! While it strengthened against the dollar to bring USD/CHF down 35 pips to .9166, it hardly moved a muscle against the euro as EUR/CHF ended the day just 1 pip lower at 1.2057.

Nothing new here! The Swissy was able to take advantage of the lack of significant reports to recover a few pips against the dollar. As for EUR/CHF, it’s been absolutely action-free for weeks now!

It’s been a while since we last got a look at Swiss data, so Swissy traders will be pleased to know that the Swiss PPI report will be available today at 8:15 am GMT. I would expect to see a 0.4% month-on-month increase following January’s flat growth, but I wouldn’t expect to see much action on the charts unless the index deviates greatly from expectations.

Aaaah… Breakout! EUR/CHF finally broke out of consolidation yesterday as the pair surged to the 1.2080 area. USD/CHF staged a strong rally as well, with the pair reaching a high of .9250 and closing at .9231.

Switzerland’s PPI report came in better than expected as it chalked up a 0.8% increase in producer prices for February, twice as much as the predicted 0.4% uptick. This was also a significant improvement over the flat reading seen last January.

However, this report wasn’t enough to keep the Swissy afloat as it lost ground to its counterparts whose economies also posted upbeat reports. For one thing, optimism regarding the second Greek bailout package gave the euro a strong boost, triggering an upside breakout for EUR/CHF. Meanwhile, the U.S. released a strong retail sales report and a relatively upbeat FOMC statement, allowing the U.S. dollar to end higher than the franc.

Today, Switzerland is set to release its ZEW economic expectations figure for February. Recall that the index climbed from -50.1 to -21.2 in January, implying that investors and analysts were less pessimistic during the period. Another climb could provide the Swissy some support in today’s trading, but any reading lower than -21.2 could push the Swissy even lower. Stay tuned for the actual release at 10:00 am GMT.

Weeeeeeee! Swissy bears must have been screaming with joy as the Swiss currency extended its slide yesterday. Against the dollar, it lost another 75 pips as USD/CHF closed at .9306. Meanwhile, EUR/CHF continued its march up the charts as it rallied 51 pips to 1.2129. Can we expect more of the same today?

That’ll depend largely on what the SNB has to say in its quarterly monetary policy statement! At 8:30 pm GMT, the central bank will hold its first announcement with interim Chairman Thomas Jordan at the helm. It’s widely believed that the SNB will keep its key rate near zero and make no changes to its monetary policy.

My fellow economic nerds and I also believe that there’s a good chance we’ll hear a word or two about the SNB’s commitment to defend the euro-Swissy peg at 1.20. We may also see the central bank adjust its forecasts for growth and inflation to the upside. Needless to say, the monetary policy statement will be one of the major highlights of the day, so DO NOT MISS IT!

The Swiss franc exuded swagger in yesterday’s trading like Mick Jagger. USD/CHF dropped from its opening price of .9307 to close the day at .9230. Meanwhile, the franc pared all of the losses it incurred against the euro on Wednesday when EUR/CHF ended yesterday’s trading 56 pips below its opening price at 1.2073.

For the most part, franc bulls have the SNB to thank for. There was no rate hike (from the current level of 0.00%-0.25%) but market participants had been hoping for the central bank to announce that it would increase its peg on EUR/CHF. However, the SNB merely reaffirmed its commitment to keep the pair above 1.2000.

A few analysts say that the central bank’s decision implies that it is less worried about the risks in the euro zone to the Swiss economy.

Our forex calendar is blank for reports from Switzerland today, which makes me wonder if the good vibes from yesterday’s not-so-dovish SNB statement will still be enough to support the franc.

With that said, be sure you be careful trading the currency, ayt?

Y’all can’t keep a good currency down! For the second straight day, the Swissy racked up pips against its major counterparts. While USD/CHF fell 74 pips to land at .9156, EUR/CHF slipped 9 pips to 1.2064.

Fresh off the SNB monetary policy assessment, it seems that traders still had a bit of Swissy-buying to do last Friday. But will it continue this week? Mabye! That is if this week’s Swiss reports give the Swissy a hand.

First up is the quarterly industrial production report. It’s due at 8:15 am GMT tomorrow and is slated to show a 0.4% increase, much better than the 1.5% decline that we saw before.

Then on Thursday, we’ll have trade balance data on the docket. Look for the Swiss trade surplus to expand from 1.55 billion CHF to 1.97 billion CHF.

As usual, positive results could lead to more gains for the currency, so be sure to catch these releases!

Score another one for the franc! After consolidating for more of the day, USD/CHF broke down late, eventually closing at .9112 and marking a 46-pip victory!

Can the franc’s good fortunes continue today?

We’ll find out more at 8:15 am GMT, when quarterly industrial production figures hit the airwaves! Word in the forex hood is that production increased by 0.4% last quarter, which would mark a significant improvement from the previous quarter’s dismal 1.5%. If we see an even larger figure than 0.4%, it could spark another rally for the franc and send USD/CHF to new lows.

Aaack! It looks like positive data wasn’t enough to give the Swiss franc swagger. The currency still lost to the dollar, giving up 5 pips, when USD/CHF ended the day at .9117.

Industrial production in Switzerland topped expectations when it printed at 7.9% for Q4 2011. The market consensus was only for a modest growth of 0.4% to follow the -2.0% contraction we saw for the third quarter.

But I guess risk aversion was the name of the game in yesterday’s trading and investors flocked to the safety of the dollar. If we don’t get any market moving news today, we’ll probably see a repeat of yesterday’s price action, so watch out!

Pretty normal day for the Swissy, which just chilled with its homies at its crib. USD/CHF stuck within range and eventually closed at .9123, just 6 pips higher on the day.

With not much hard data released yesterday, it’s no surprise that we didn’t see any strong moves in the Swissy. That could change today though, when trade balance figures are released at 7:00 am GMT. Word on the street is that Switzerland will post a surplus of 1.97 billion CHF last month, up from the 1.55 billion CHF in January.

Take note that the Swiss economy has posted declining surpluses over the past three months. If today’s report comes in worse-than-expected, it may raise concerns that the Swiss franc’s strength may be hurting export industries. This in turn could prompt SNB officials to do some verbal jawboning in order to weaken the franc.

Uh-ohh! It looks like not even positive data from Switzerland could keep the Swiss franc from extending its losses to the dollar. USD/CHF ended the day higher yesterday at .9134 after opening at .9123.

It would seem that traders got a tad overwhelmed by growing concerns about the global economy. And so, risk aversion came into play and the better-than-expected Swiss trade balance report was brushed aside.

It was reported that Switzerland’s exports outpaced its imports by 2.68 billion CHF in February which topped the market consensus which was for a surplus of 1.97 billion CHF.

Our forex calendar is blank for reports for the Swiss franc today so be sure to gauge market sentiment. Good luck!

It ends at three! The Swissy finally snapped its 3-day winning streak last Friday as traders decided to shy away from the safe haven dollar and rallied to European and higher-yielding currencies. USD/CHF ended the U.S. trading session with a 53-pip win at .9081.

The SNB Quarterly Bulletin released last Friday didn’t provide any new developments. The only key take-away was that the central bank affirmed its stance to keep exchange rates stable through defending the 1.2000 floor on EUR/CHF.

Switzerland’s economic cupboard this week is pretty barren with only the medium-tier KOF economic barometer due. It will come out on Friday, and is expected to show a 0.08 figure. Last month, the reading of -0.12.

Swiss franc’s got swag! Well, at least in yesterday’s trading. It pared the losses it incurred during the Tokyo session against the dollar when USD/CHF dropped from its intraday high of .9138 to close the day at .9030.

On the other hand, it wasn’t so lucky against the euro. EUR/CHF ended the day at 1.2062 after opening at 1.2049.

Because we didn’t get any economic report from Switzerland yesterday, the Swiss franc’s price action was primarily dictated by market sentiment. Bernanke’s dovish remarks allowed it to post a win against the Greenback. However, the euro benefited more from the overall dollar weakness than the Swiss franc.

But don’t fret. Today we actually have a Swiss economic report to sink our teeth into. The UBS Consumption Indicator for February is on tap at 6:00 am GMT. If the index comes in higher than January’s 0.92 reading, we may just see the Swiss franc rally. So don’t miss it!

The Swissy snapped its two-day winning streak yesterday as the UBS consumption indicator came in lower than the previous month’s reading. USD/CHF ended the U.S. trading session at .9049, 19 pips higher from its opening price.

The UBS consumption indicator printed a reading of 0.87 only. Last month, the reading was at 0.93 (revised up from 0.92).

Switzerland’s forex calendar today has nothing on it, so the Swissy will most likely get its price action cues from data from other major economies like the U.S. and the euro zone. The release of the durable goods orders from the U.S. at 12:30 pm GMT, for instance, is normally a major market-mover. It could indirectly have an effect on the Swissy’s movement.

Did I just land on Dojiville? Oh wait, those are just the franc’s charts. With no economic report out from Switzerland yesterday, the franc bulls and bears barely had anything to trade with. Both USD/CHF and EUR/CHF ended the day with dojis!

Switzerland’s economic board is empty again today, but stay on your toes for any economic reports that might affect risk sentiment and the low-yielding franc’s price action.

Good luck in your trades today, mates!

Let’s all give the franc a lil’ pat on the back! Thanks to a positive Swiss report and risk aversion in markets, the low-yielding franc posted gains against its major counterparts. USD/CHF fell by 40 pips to .9027, while EUR/CHF also slipped by 16 pips to 1.2039.

Last Friday the KOF economic barometer printed at 0.08 for the month of March, which is a heck of a lot better than February’s -0.11 reading and the expected 0.06 figure. Remember, the KOF barometer is a combined reading of 12 economic indicators related to banking and consumer confidence, housing, and production.

Of course, it didn’t hurt the low-yielding currency that risk aversion was in play last Friday! Word on the hood is that investors were a tad bit concerned that the euro zone firewall and Spanish budget plans were worse-than-expected.

We got a couple of major Swiss reports that might change sentiment for the franc so you better pay attention! The fireworks will start today at 8:15 am GMT when the Swiss retail sales report is scheduled for release. Analysts are expecting a pullback from its 4.4% figure in December, but keep an eye out in case we get a surprise on this one. At 8:30 am GMT we’ll also see the SVME PMI report, which is expected to clock in at 49.5 in March after showing a 49.0 figure in February.

Switzerland’s economic gurus won’t be entertained until Thursday when the foreign currency reserves data is released at 8:15 am GMT, followed by the Swiss CPI report at 8:15 am GMT. Both reports are expected to print better than their previous readings, but make sure you’re prepared in case it disappoints consensus!

Have fun in your trades this week, homies!