Trade Desk Thoughts - Swiss Retail Sales

Actual 0.7%, Expected 3.2%, Previous 7.4%

Release Explanation: A very important set of figures that make up a large percentage of consumer spending numbers. Serviced based economies rely on the strength of the consumer to keep things moving along, this therefore impacts PCE and CPI, the Inflationary reports.

Trade Desk Thoughts: Swiss retail sales had a steep drop in June, falling to 0.7% from 7.4% year-over-year in May. The number was way below the analysts’ expectations, which called for a 3.2% read. The number is in-line with the recent releases from Switzerland, gauging Swiss consumer confidence, which suggest households are becoming less and less optimistic about future expectations as inflation is eroding purchasing power.

Forex Technical Reaction: The release caused a small spike in the swissy’s (Usd/Chf) valuation and has since gained an additional 20 pips. At the same time, the Swiss franc posted some small gains against the euro but continues to trade sideways against the British pound.

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