Daily Economic Commentary: Switzerland

Now that’s how you end the week with a bang! With the dollar dropping across the board, USD/CHF sank a massive 73 pips to end the day at .9395. What the heck happened?

It was the strange combination of positive sentiment following the EU summit, as well as worse-than-expected U.S. data that helped the Swiss franc edge higher. Make sure you stop by my EUR and USD commentaries for more details on those events.

Nothing headed our way from Switzerland until Wednesday, when the ZEW economic expectations report is scheduled for release. For now, we may not see as much movement on USD/CHF, but keep your heads up, as you never quite know what might rock the Swissy’s socks!

The Swissy put the hurt on the euro yesterday to push EUR/CHF 63 pips below last Friday’s close. But against the dollar, it took a beating as USD/CHF ended the day 39 pips above Friday’s close. Where is the Swissy headed today?

From the looks of it, risk sentiment has been the driving force behind the Swissy’s movements. Against the euro, it has been benefiting from safe haven flows stemming from renewed concerns in the euro zone. But obviously, the dollar remains the safe haven of choice for many traders.

With no economic reports coming out of Switzerland today, my guess is that risk sentiment will continue to dictate Swissy price action. With that said, I suggest you keep tabs on the latest developments in the euro zone and monitor other markets such as equities and commodities to get a pulse on the risk environment.

With the markets in wait-and-see mode, USD/CHF stuck in consolidation mode, as it failed to make any new highs or lows. The pair eventually closed at .9474, up 12 pips from its opening price.

For today, we’ve got the ZEW economic expectations report coming in at 10:00 am GMT. Take note that this has been trending higher the past 6 months, with last month’s release printing above 0.0 for the first time since April 2012. Should we see a figure above February’s 10.0 mark, it could give the franc some good support.

Bad data sure wasn’t enough to rain on the Swiss franc’s parade! Despite a negative ZEW Economic Expectations report, the franc still finished higher against the dollar at .9443 after opening at .9474.

Data showed that optimism for the Swiss economy has grown grimmer with the report printing at 2.3, much lower than its previous reading of 10.0.

Today, our forex calendar is blank for reports from Switzerland. With that said, make sure you’re on your toes for any shift in market sentiment. Keep in mind that the currency usually rallies against the dollar when risk appetite is up!

Another day in the slammer for USD/CHF, as it stuck within its daily trading range. USD/CHF failed to make any new highs or lows, eventually finishing at .9470, up 28 pips from its starting price.

The Swiss franc may have been slightly weaker yesterday thanks to concerns over the euro zone. While Switzerland isn’t part of the euro zone, it does sometimes suffer indirectly when we see the euro sell-off.
Once again, no biggies on the docket from Switzerland today, so make sure you keep an eye on what’s happening in Cyprus.

The Swiss franc dominated in Friday’s trading like the Terminator. Resistance around .9475 held on USD/CHF and during the London session, the pair dropped like a rock to .9400. It then closed at .9407 with the franc scoring a 63-pip gain.

Risk appetite sparked by hope that Europe would be able to find a solution for Cyprus helped boost the franc. So if you’re planning to trade the currency today, it would do you well to keep tabs on updates from the euro zone as they could continue to dictate the currency’s price action. Good luck!

After a spectacular performance last Friday, the Swiss franc turned sour yesterday and gave up all of its gains. USD/CHF closed the day at .9486, 56 pips higher from its Asian session opening price.

Apparently, traders are getting concerned about the Cyprus deal, as it sets a precedent on how financial problems should be fixed in the euro zone. If Cyprus was able to reform its banking system, others nations should be able to too.

No data on the docket today, so the Swissy will probably be moved by developments in the euro zone. If sentiment continues to dull, we could see the Swissy give up more ground against the Greenback.

What a snoozer! Without any economic data on tap from Switzerland and major updates from the euro zone, the Swiss franc traded within a pretty tight range of just over 30 pips against the dollar. USD/CHF spent most of the day hovering below .9500 before closing the day at .9484.

Today, our forex calendar is still blank for reports for the franc which means that we could see the pair range. But who knows! Surprising news may just break out from the euro zone and cause a breakout on USD/CHF. Be on your toes!

Without any economic data from Switzerland, the franc was easily bullied by the dollar yesterday. USD/CHF broke out of its range and even traded past resistance at .9500. By the end of the New York session, the pair was up at .9541 with the franc sustaining a 57-pip loss.

Market sentiment dictated the franc’s price action. Unfortunately for the currency, concerns about Cyprus had investors flocking into the safety of the dollar and the yen.

Our forex calendar is still blank for reports for the franc today. With that said, don’t be surprised to see market sentiment move the currency once again!

Due to the absence of economic catalysts, the franc barely moved against both the dollar and the euro last Friday. USD/CHF, for instance, it traded within a very tight 30-pip range.

Tomorrow, the SVME PMI will be published. It’s anticipated to print a reading of 50.5, down from the previous month’s 50.8. A declining reading is normally considered bearish for the domestic currency as it suggests that businesses are becoming less optimistic about the economic landscape.

The Swiss National Bank (SNB)'s report on its foreign currency reserves will also be released this Friday. Last month, the bank revealed that its foreign currency reserves have increased to 430 billion CHF (converted to CHF) from 427.00 billion CHF. An increasing figure is generally considered bearish for the domestic currency as it implies that the central bank has ramped up its efforts to prevent the appreciation of the franc.

Both Switzerland and the euro region were on banking holidays yesterday so the franc only moved against the Greenback. Dollar weakness dragged USD/CHF to a close 33 pips lower than its open price.

The franc has a chance of making its own waves today as Switzerland releases its SVME PMI. The report is expected to print at 50.5 in March as opposed to the 50.8 reading in February. Since manufacturing is important in any major economy, watch this report closely for any surprises.

Also, keep your eyes peeled for any news that might affect risk sentiment. We’ll never know when the franc will go back to its safe haven status!

Price action was as tight as usual for franc pairs as USD/CHF moved by only 40 pips during yesterday’s trading. The pair was able to find support around .9450 but was unable to sustain its rally past .9490. Can we expect the same for today?

Weaker than expected Swiss SVME PMI triggered a slight Swissy selloff during yesterday’s trading as the figure came in at 48.3, down from the previous reading of 50.8 and below the consensus at 50.5. This shows that the manufacturing industry started to contract in March, which might be negative for overall growth later on.

There are no top-tier reports due from Switzerland today so the franc could be in for yet another round of quiet trade. Do keep an eye out for U.S. data (ADP non-farm employment change and ISM non-manufacturing PMI) if you’re trading USD/CHF!

Positive economic reports? No thanks. Though no reports were printed from Switzerland, the franc managed to score pips against the dollar and the euro. USD/CHF plunged by 43 pips while EUR/CHF suffered a 24-pip drop.

Switzerland won’t be releasing economic reports again today so the franc will most likely trade on the price action of its counterparts. Initial jobless claims and factory orders could move the Greenback today while the big ECB interest rate decision and press conference could set the tone for euro trading.

Good luck trading today, homies!

And the .9500 handle holds once more! USD/CHF made a beeline for the .9500 major psychological resistance during the Asian session but made a quick turnaround and headed south for .9400. Will we see a bounce or a break today?

USD/CHF was able to benefit from the all-out dollar rally that took place after the BOJ statement triggered a sudden rally on USD/JPY. Unfortunately for the pair, the .9500 level was too hot to handle as it pushed USD/CHF back on track to testing .9400. There were no Swiss economic reports to save the franc then.

For today, Switzerland is set to print its foreign currency reserves report. Recall that their previous release hinted that the franc peg is starting to become too expensive for the SNB to maintain, and today’s release could highlight the growing costs of keeping the franc’s value down. If that’s the case, the .9400 handle could give way for USD/CHF as traders could question the sustainability of the SNB’s currency intervention.

Don’t forget that the U.S. will release the March NFP figure during today’s U.S. session and that this release could also have a huge impact on USD/CHF!

The Swissy sure showed the markets who’s boss last Friday! It gained 63 pips against the dollar as USD/CHF finished the week at .9333. Will it continue posting gains this week?

With the NFP report weighing down the dollar, the Swissy had no trouble appreciating against the American currency. But we’ve got a brand new week ahead of us, so it’s best we check out the reports that could affect USD/CHF action.

Aside from the hard-hitting reports that the U.S. is set to publish later in the week, we have Swiss CPI (to stay at 0.3%) and retail sales data (to show 2.9% surge) coming out tomorrow. Strong results from these reports could trigger another Swissy rally, so y’all should tune in when these releases come out in the London session on Tuesday.

USD/CHF must’ve gotten exhausted from its sharp dive last Friday as the pair consolidated for an entire day yesterday! The pair moved sideways between .9335 and the .9360 area as though waiting for more market catalysts. Will we see one today?

A breakout could be in the cards for USD/CHF today as Switzerland is set to release its CPI, unemployment rate, and retail sales figures for March. The jobless rate, which is due 6:45 am GMT, could hold steady at 3.1% while the CPI is expected to post another 0.3% uptick for the month. Retail sales are projected to jump by 2.9% on an annual basis, an improvement over the 1.9% growth seen last February.

Take note that stronger than expected data could trigger a franc rally, which might push USD/CHF lower, while weaker than expected results could force the franc to return its recent gains. Stay on your toes when the data is released around 8:15 am GMT.

Negative data wasn’t a problem for the Swiss franc in yesterday’s trading, no Sir! USD/CHF finished the day 28 pips below its opening price at .9326 despite disappointing figures on Switzerland’s inflation and consumer spending.

The CPI report for March clocked in at 0.2% versus the 0.3% forecast while retail sales came in at 2.4%, 0.5% lower than the consensus.

It would seem that the currency benefitted from the good vibes bright about by positive data from the euro zone. With that said and given that no reports are due from Switzerland today, be sure to keep an ear out for releases from the region as they could continue to affect the franc’s price action!

Nice try, but better luck next time! After a brief attempt to break below .9300, the USD/CHF bulls came roaring back to push the pair back up to the .9330 price area.

Once again, no economic reports are lined up from Switzerland today, so we could see more subdued trading. Make sure you hit up my EUR commentary for some clues as to what might affect volatility during the London session!

What a snoozefest! Still no data out from Switzerland yesterday, so USD/CHF and EUR/CHF danced to the tune of the dollar and the euro’s price action.

Yesterday USD/CHF was able to recover more than half of its intraday losses by the end of the day while EUR/CHF popped a bit higher on lack of major data from the euro zone.

The U.S. retail sales report is the only major report scheduled for today so make sure that you have prepared well for it! I hear that Forex Gump has a detailed trading kit ready for ya!

Slow but sure, baby! For the 10[SUP]th[/SUP] time in the past 12 trading days, the franc gained versus the dollar, as USD/CHF closed at .9286, down 23 pips on the day.

Pretty interesting Friday for the franc, as it was one of the only majors to gain versus the dollar. The question is whether this trend on USD/CHF can continue, or will we see a major retracement soon. Make sure to hit up my U.S. and euro zone commentaries for potential market movers that could dictate CHF trading this week!