Swiss Exports Drop Puttung Pressure On SNB

[B]Fundamental Headlines[/B]
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• CIT $3 Billion Bondholder Rescue May Not Prove Permanent Cure for Lender– Bloomberg
• Stocks Rise on Earnings Forecasts; Credit-Default Swaps Decline, Yen Gains– Bloomberg[/I]

[B]USDCHF[/B] – The June Swiss trade balance report showed the country’s surplus shrank to 1.57 billion from 2.0 billion as weak global demand continues to put pressure on exports which fell by 2.6%. On a positive note imports rose by 3.8% after a 4.9% drop in May which could be a sign that domestic demand is improving. Nevertheless, the Swiss economy is dependent on exports and the lack of demand for its goods will continue to lead to more layoffs. The SNB has pledged to continue trying to depreciate the Franc in order to stimulate demand for Swiss goods and their efforts have supported the currency but have not had the intended results. For more news and resources, visit the new Swiss franc Currency Room.
GBPUSD[/B] – The amount of new debt held by the U.K. government rose by 13.0 billion in June following 19.9 billion the month prior. The budget deficit was less than the forecast of 15.5 billion but was still the largest amount for the month since record keeping began in 1993. Tax revenues continue to decline for the government which could bring the country’s credit rating back under question as it continues to spend to try and end the worst recession since WWII. The BoE recently added £25 billion to their quantitative easing efforts as it attempts to add liquidity to credit markets in an attempt to boost lending. Discuss the topic and your trade ideas in the GBP/USD Forum.