Swiss KOF Points To A Flat GDP

Swiss KOF Economic Barometer Actual -0.05, Expected 0.19, Previous 0.28 (Revised from 0.35)

Release Explanation: The overall economic health barometer is called the Leading Index. It measures 12 components of the economy including; consumer sentiment, new industrial. orders, housing permits, equity prices, average hourly rate, interest rate spreads.

Trade Desk Thoughts: The Swiss Leading Indicator was released at -0.05 points, much lower than the forecasted number. The index shows that the GDP growth might be flat in the coming quarters. Analyzed by its sub-indexes, the core-GDP module clearly shows the economy is contracting, but the construction and the banking modules limit, somehow, the overall declines.

Forex Technical Reaction: The release went unnoticed in the currency market. The swissy is trading just above TheLFB R1 (1.2045), after gaining 50 pips overnight.

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