Daily Economic Commentary: Switzerland

Uh oh. The Swiss franc has ran out of fuel! USD/CHF closed higher for the first time in three days yesterday. The pair was up at .9321 after opening at .9277 by the New York session close.

There weren’t any reports from Switzerland and this might have left the currency vulnerable to market sentiment. Unfortunately for the franc bulls, risk aversion ensued after the Chinese GDP report came in worse than expected.

No top-tier data is due for the franc in today’s trading. However, we do have quite a few from the euro zone. Because of the region’s close proximity to Switzerland, euro zone reports tend to affect the franc too. With that said, make sure you don’t miss 'em later!

The franc was a big winner yesterday, as it simply dominated the Greenback. The end result? A 100-pip drop in USD/CHF, as the pair closed at .9220! The question is, can this be sustained?

That question may be answered at 9:00 am GMT, when the Swiss ZEW economic expectations report is scheduled to hit the airwaves. Keep in mind that after several months of ticking in the red, the index has actually come in above 0.0 the past two months, including last month’s reading of 2.3. Should we see another positive figure today, it could help the Swiss franc continue its winning ways.

USD/CHF skyrocketed in yesterday’s trading faster than you could say, “There she blows!” The pair bounced off its day open price at .9221 and finished higher at .9331. What caused the franc’s loss?

It would seem that the currency fell victim to market sentiment. Speculations of a rate cut from the ECB sent the euro lower. Because the franc is highly correlated to the shared currency, it also followed suit into the bears’ territory.

Not even the positive ZEW Economic Expectations report for Switzerland helped the franc. It printed much higher at 20.0 for March from 2.3 in February, indicating optimism for the country. Tsk, tsk!

No reports are scheduled for the currency today which means that it would probably mimic the euro’s moves on the charts. So be on your toes!

Since Switzerland was void of economic reports yesterday, the franc’s price action was dependent on its counterparts. USD/CHF only slipped by 4 pips while EUR/CHF popped up by 14 pips.

Dollar weakness dragged USD/CHF to its intraday low of .9289 but risk aversion soon pushed it to .9326. Meanwhile, EUR/CHF got some support in late London trading after worries over Italy’s failed Presidential elections had subsided a bit.

Like the other major currencies Switzerland doesn’t have anything on its docket today. This is why you should pay attention to the IMF and G20 meeting scheduled over the next few days. Who knows? We might hear something market-moving!

Just like its European and comdoll counterparts, the Swiss franc was forced to give up its gains to the dollar in Friday’s trading on risk aversion and profit-taking. USD/CHF found support around the .9300 handle and closed 9 pips higher from its opening price at .9335.

The political debacle in Italy rained down on risk appetite. It also didn’t help that some traders decided to close their positions ahead of the G20 meetings.

I wouldn’t be surprised if the franc continues to trade according to market sentiment today given that our forex calendar doesn’t have anything due from Switzerland. With that said, make sure you keep tabs on the political situation in Italy, alright? Political uncertainty can usually cause risk aversion and the franc doesn’t do so well when traders are risk averse.

Yesterday didn’t turn out to be a good day for the Swissy as it depreciated notably versus the safe haven Greenback. USD/CHF began the day at .9317 but ended the U.S. trading session slightly higher at .9344.

No data was released yesterday, but later, at 6:00 am GMT, we’ll be treated to Switzerland’s Trade Balance for the March. In February, Switzerland’s trade balance showed that it had a 2 billion CHF (revised down from 2.10 billion CHF). For March, the forecast is a 1.73 billion CHF surplus. A falling surplus is normally seen as negative for the domestic currency as it could mean that the country’s exports are declining.

The franc is back in the game, baby! After eons of merely reacting to its counterparts’ price action, the franc showed off its own moves yesterday. USD/CHF popped up by 108 pips while EUR/CHF moved closer to 1.2300 by rising by 81 pips. What the heck happened?

Blame it on the SNB! Traders completely shrugged off Switzerland’s better-than-expected trade balance numbers (1.90 billion CHF versus the expected 1.73 billion CHF) when rumors of the SNB raising the EUR/CHF floor to 1.2300 gained momentum in the forex grapevines. The SNB hasn’t confirmed the rumors yet, but the possibility of the central bank stepping up its efforts after the G20 meeting last weekend was enough to spur on the franc bears.

If we don’t hear any development on this rumor today then franc traders can just trade the UBS consumption indicator scheduled for release at 6:00 am GMT. It’s not as exciting as the SNB confirming the rumor, but hey, it’s something, right?Good luck and good trading, fellas!

Due to the lack of market-moving events, the Swiss franc mainly moved sideways versus the safe haven U.S. dollar for the most part of the day. USD/CHF traded between 9474 and .9443 during both the Asian and European trading session, and then posted a new 3-week high at .9500 during the U.S. session. By the end of the day, however, the pair went back down to .9472.

The only report released yesterday was the UBS consumption indicator. It came in with a reading of 1.25, which was slightly higher from the previous month’s revised up reading of 1.24.

Switzerland’s economic cupboard is completely empty, so we could see the franc trade sideways again. Watch the previous day’s highs and lows folks, as they could serve as major inflection levels today.

Phew! The franc got a breather from its counterparts yesterday as USD/CHF slipped by 22 pips while EUR/CHF also dropped by 40 pips. What the heck happened?

It wasn’t because of any Swiss data, that’s for sure. Switzerland didn’t release any economic report yesterday so the franc pairs’ price action depended on the franc’s counterparts.

Luckily for the franc, the Greenback took a beating on a surge in risk appetite around the same time when the euro also struggled with rumors of an ECB rate cut.

At 7:00 am GMT today we’ll see Switzerland’s KOF economic barometer followed by SNB Governor Jordan’s speech at 8:00 am GMT. These reports are due before the big U.S. GDP report at 12:30 pm GMT today, so there’s still a chance that these could have significant impact on the franc pairs. Be sure to watch out for any significant surprises, will ya?

Way to go, little one! The Swissy managed to pack some gains against the U.S. dollar in Friday’s trading as USD/CHF dropped back to the .9400 major psychological support. Will we see more gains for the franc this week?

A combination of stronger than expected Swiss data and weaker than expected U.S. GDP allowed USD/CHF to slide back down on Friday. Switzerland’s KOF economic barometer came in slightly higher than the estimate of a 0.98 reading as it climbed from 1.00 to 1.02 in April, reflecting an improved outlook for the economy for the next six months.

There are no reports due from Switzerland today, which suggests quiet trading for franc pairs. Do keep an eye out for the release of U.S. pending home sales at 3:00 pm GMT as a weak figure could push USD/CHF even lower.

Save for the SVME PMI release on Thursday, Switzerland’s economic calendar is empty for the rest of the week so make sure you watch out for U.S. reports and possible changes in market sentiment if you’re trading USD/CHF!

Who needs economic data when other economies are already providing enough action? Both USD/CHF and EUR/CHF suffered losses yesterday thanks to weak U.S. data and risk aversion in the euro region.

Among other things the U.S. printed weak income, spending, and pending home sales data yesterday. Meanwhile, speculations of an ECB rate cut continued to drive the euro lower against the franc and its other counterparts.

Switzerland’s economic cupboard will once again be empty today so watch out for reports from other major economies that could influence appetite for low-yielding currencies.

It was a big day for the Swissy as it dominated its two major counterparts. It trampled the dollar to take USD/CHF 75 pips lower at .9298, while crushing the euro to drag EUR/CHF 31 pips down to 1.2245. Can it sustain these gains?

Not much news from Switzerland yesterday, and it seems as though we’ll get more of the same today since our Swiss buddies will be celebrating Labor Day. However, that doesn’t mean we won’t see action on Swissy pairs.

Keep in mind that the U.S. has some serious red flags lined up for today that could send waves of action across the forex markets. Be sure to check out my USD commentary to find out what to expect from the U.S., homies!

Swissy buyers don’t seem to be showing any signs of slowing down. They took USD/CHF another 25 pips lower while dragging EUR/CHF 19 pips down. How long can they keep this up?

Well, that might depend on whether the SVME PMI report, which is due at 7:30 am GMT, prints favorable results or not. It’s expected to rise from 48.3 to 49.1. Now take note, this report isn’t normally known to be a big market mover, but if it prints results that are much worse than expected, a selloff could be in the cards for the Swissy.

Also, keep in mind that the euro zone and U.S. both have some tier 1 events lined up for today. These could very well dictate Swissy price action today, so check out our economic calendar to make sure you know what to expect.

Almost as soon as the day started, USD/CHF rallied higher from its opening price of .9273. The pair tapped an intraday high of .9364 before it closed with the franc sustaining a 76-pip loss at .9349.

Without any economic data on tap for the franc, it fell victim to market sentiment. Unfortunately for the currency, the ECB’s remarks that it is open to negative interest rates dragged it down the charts along with the euro.

Today, no reports are due from Switzerland. However, the U.S. NFP report is on tap and it could prove to be a big market-mover in today’s trading. Don’t miss it!

The Swissy was one of the few currencies that was unable to join the festivities of last Friday’s rally. Unlike most of its counterparts, it ended the day lower against the Greenback, as USD/CHF rose 9 pips to .9358.

As usual, the economic calendar was blank for Switzerland, but it will be breaking its silence tomorrow with the release of some notable reports.

The SECO consumer climate index is due to come out and it’s expected to rise from -6 to -3. Meanwhile, the unemployment rate is expected to hold steady at 3.1%. We’ll also take a look at the Foreign Currency Reserves report, which last revealed reserves amounting to 438.3 billion CHF.

And finally on Wednesday, the CPI report will be available. Expect it to show a 0.1% increase in prices.

Make that three days in a row that USD/CHF has finished in the green! The pair rose another 31 pips to end the day at .9385. Will we see a fourth consecutive green candle after today’s trading?

Make sure you check your charts at 5:45 am GMT, as the SECO consumer climate report is scheduled for release. Expectations are for a reading of -3, which would mark a slight improvement from the -6 we saw last month. A better than expected result could give the Swissy some momentum to bounce back from its recent losses.

Later on at 7:00 am GMT, the SNB will be releasing the latest levels of its foreign currency reserves. This should provide us some insight as to how strongly the central bank is protecting the EUR/CHF peg.

Tuesday wasn’t a good day for the Swissy - it wasn’t able to put up a single win against its major counterparts! While USD/CHF crawled 17 pips higher to .9402, EUR/CHF climbed 26 pips to finish at 1.2296. Will it keep losing ground today, or will we see a midweek reversal?

Yesterday’s two releases did little to stoke demand for the Swissy. First, the SECO consumer climate index came in worse than expected and printed a reading of -5 (versus forecasts that called for a reading of -3).

Then the foreign currency reserves report revealed that the SNB’s foreign reserves dropped to 433.6 billion CHF from 438.3 billion CHF in April, which suggests that the SNB hasn’t been as busy defending the franc. But then again, it HAS been a while since EUR/CHF last fell below 1.2100.

Up ahead, we have another notable report coming out at 7:15 am GMT. Last month’s CPI is due and is slated to show a 0.1% uptick, down from the previous month’s 0.2% rise. Keep in mind that weaker-than-expected inflation usually translates to currency weakness, so a flat reading (or a negative figure) could extend the Swissy’s losses.

Just like its European counterparts, the Swiss franc edged higher versus the dollar in yesterday’s trading. After opening at .9402, USD/CHF eventually ended trading at .9354, marking a near 50-pip drop. Will we see more Swissy strength today?

The Swiss CPI report gave us a small surprise as it indicated that inflation remains flat. Initial predictions were for a 0.1% uptick in consumer prices. Nevertheless, this didn’t have too much of an effect on Swissy trading.

Nothing lined up from Switzerland today, so we’ll most likely have to take our trading cues from risk sentiment.

With no data out from Switzerland yesterday, the franc danced to the tune of its counterparts’ price action. USD/CHF shot up by a whopping 130 pips while EUR/CHF tipped an intraday high of 1.2409 before closing 53 pips higher than its open price.

We won’t be seeing any Swiss-related economic report again today, but I did mention in my other write-ups that leaders of the G7 countries will start their weekend meeting today. Will we hear anything about a currency war? Watch the newswires closely for any announcement that might influence the franc’s price action!

Somebody just got burned! The Swiss franc lost ground against both the U.S. dollar and the euro last Friday as USD/CHF jumped from the .9500 area to a high of .9628 while EUR/CHF rallied from its 1.2376 open price to close at 1.2435. What’s in store for the franc today?

There were no reports released from Switzerland on Friday, leaving the franc vulnerable to data from its major counterparts. As it turns out, the U.S. Federal Reserve started talking about its concrete plans to withdraw monetary stimulus, which boosted demand for the Greenback for almost the entire trading day.

Today, Switzerland will print its retail sales figure for March and possibly print a 1.0% uptick in annual consumer spending, lower than the 2.6% year-over-year increase seen last February. A stronger than expected figure could provide support for the franc and keep its losses in check while a weaker than expected figure could worsen the franc’s ongoing selloff. Make sure you watch out for the actual release at 8:15 am GMT if you’re trading the franc pairs!

The only reports left on Switzerland’s schedule for the rest of the week are the PPI figures and ZEW economic expectations data due on Wednesday.