Swiss Trade Surplus Narrows in June, Franc Fails to React

EUR-CHF remained in close proximity to 1.5200 after failing to overcome 1.5225 offers on Monday. Most of the recent movement has been dominated by the dollar majors, with the cross still experiencing narrow ranges either side of 1.5200. USD-CHF is trading close to 1.0700 after dollar short covering picked up ahead of today’s Bernanke testimony. The local market did not react to the earlier release of the Swiss June trade data, which revealed a surplus of CHF 1.57 bln. On the year, exports fell by a sharp 20.4% in nominal terms and were down 23.5% y/y in real terms, while imports fell by 17.7% y/y in nominal terms.