Trade Desk Thoughts - Swiss ZEW Economic Expectations

Swiss ZEW Economic Expectations Actual -91.1, Previous -44.4

Release Explanation: Zentrum für Europäische Wirtschaftsforschung (ZEW) Expectations determines institutional investor sentiment regarding the economic outlook. The monthly indicator reflects the difference between the share of investors that expect further improvement of economic conditions and those that expect growth to decrease.

Trade Desk Thoughts: The Zew Indicator for Switzerland, gauging analysts' economic expectations, tumbled to -91.1 in September, from -44.4 one month earlier. Only 2.2% of the respondents expect an improvement in the current conditions over the next 6 months. At the same time, a staggering majority of analysts predicted the unemployment rate will rise in Switzerland, while the SNB is expected to cut interest rates again in the coming months.

Forex Technical Reaction: During the Asian session, the swissy gained 180 pips, touching TheLFB S3. However, during European trading hours, the swissy gave up almost all of the gains, and is now trading below the 1.1400 resistance level.

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