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Swiss KOF dropped to 103.5, retail sales rose 3.1% yoy

Swiss KOF Economic Barometer dropped to 103.5 in November, down from 106.6, above expectation of 101.0. The barometer is thus moving towards its long-​term average, which means that the outlook for the Swiss economy remains subdued also in view of the current pandemic situation. Also from Swiss, retail sales rose...

Dollar Selling Continues Despite Solid NFP, Euro Surges

Dollar's selloff continues today despite stronger than expected employment data. Though, selling focus has turned to against Euro and Swiss Franc. Australian Dollar is taking a breather, together with global stock markets. There is no doubt that Dollar will end as the worst performing one for the week, followed...

Dollar Broadly Sold Off as Markets in Full Risk-On Mode

Global stocks surge sharply as investors seem to be very optimistic on the result out of US elections. Major European indices are currently up around 2% while DOW future is up 400 pts. Dollar is sold off sharply, together with Yen and Swiss Franc. Australian Dollar left RBA's rate...

USD/CHF: Continuation Of The Rebound

Switzerland consumer prices were flat for a second month in a row in October on a monthly basis, as expected. Year on year, prices decrease slowed at -0.6%, as forecasted, after a 0.8% decline in September. From a technical point of view, on a daily chart, USD/CHF remains well oriented...

Swiss CPI ticked up to -0.6% yoy in Oct

Swiss CPI came in at 0.0% mom in October, matched expectations. Annually, CPI improved to -0.6% yoy, up from -0.8% yoy, matched expectations. FSO said: "The stability of the index compared with the previous month is the result of opposing trends that counterbalanced each other overall. Prices for clothing and...

Traders Calm ahead of Pre-Election Weekend, Dollar Pares Gains

Investors are rather calm just ahead of the pre-election weekend. European indices quickly pare back initial losses, while DOW future is down not as much before open. Dollar is also giving up some of this week's gains, despite pretty solid personal income and spending data. On the other hand,...

Swiss KOF dropped to 106.6, subdued outlook in view of pandemic and restrictions

Swiss KOF Economic Barometer dropped to 106.6 in October, down from 110.1, missed expectation of 107.0. KOF said, "the economic outlook for Switzerland is subdued in view of the pandemic situation and the restrictions that are likely to result from it." "The lower level of the KOF Economic Barometer in...

Swiss government sees smaller GDP contraction this year, further upward pressure on Franc remains high

Swiss Government's Export Group said prospects for 2020 are "less negative than feared in the middle of the year". But "momentum is likely to weaken as time goes on". The group expects GDP to fall by -3.8% this year. That's much better than June forecast of -6.2%. That's the...

USD/CHF Higher on KOF Economic Barometer

USD/CHF has posted considerable gains on Wednesday, recovering most of the losses from Thursday. In the European session, the pair is trading at 0.9226, up 039% on the day. KOE Economic Barometer Climbs There was positive news earlier on Wednesday, as the KOF Economic Barometer rose to 113.8 in September, up...

Markets in Range, Trapped by Low Month-End Volatility

The forex markets are generally staying in tight range today, without much reaction to better than expected job data from US and GDP from Canada. Nor was there much movements after comments from ECB President and BoE Chief Economist. Subdued month-end trading is keeping volatility very low. Nevertheless, it's...

Swiss KOF rose to 113.8, economy taking a V-shaped course

Swiss KOF Economic Barometer rose to 113.8 in September, up from 110.2, beat expectation of 106. That's the four rise in a row after a historic drop earlier this year. KOF said, "at present, the economy is taking a V-​shaped course, so that a recovery of the Swiss economy...

Sterling Jumps on BoE Comments, Dollar Softens as Stocks Rebound

Sterling rises broadly today after BoE Deputy Governor indicated that negative interest rate is not imminent. Rebound in the Pound somewhat lifts other European majors too. Australian Dollar is following as the second strongest for now, with help from rebound in stocks. Dollar is trading broadly lower, paring last...

Swiss Q2 GDP contraction revised up to -7.3% on benchmark revision

Swiss GDP contraction in Q2 was revised to -7.3%, up from -8.2%, after "benchmark revision" based on international recommendations" . SECO noted, though, "he interpretation of this data from an economic perspective is remaining largely unchanged." "As well as the decision to ease public health restrictions relatively early, the industry...

Sunset Market Commentary

Markets Commenting today’s moves on main markets isn’t the most exciting thing to do. European stock markets tried a lukewarm comeback after a -1% opening, but don’t get that far. The fragile risk environment continues to support the dollar. EUR/USD changes hands around 1.1630, dropping further below the 1.1696 support...

Dollar Rally Continues, Sterling Resilient, Franc Shrugs SNB

Dollar remains the strongest one for the week, followed by Yen, as risk aversion continue to dominate. The recovery attempts in European stocks appeared to have faded very quickly while DOW futures point another day of lower open. Sterling is relatively resilient, with some support from the new jobs...

SNB Expects Deflation to Stay Until 2Q21. Pledged to Intervene Exchange Rate as CHF Remains Highly Valued

As widely anticipated, SNB left the policy rate unchanged at -0.75%. It reiterated the view that Swiss franc remained “highly valued” and the commitment to intervene in the FX market. The central bank will publish data on money and foreign exchange market operations on a quarterly basis, compared with...

SNB keeps negative rate at -0.75%, remains willing on FX intervention

SNB left sight deposit rate unchanged at -0.75% as widely expected. "In view of the fact that the Swiss franc is still highly valued, the SNB remains willing to intervene more strongly in the foreign exchange market, while taking the overall exchange rate situation into consideration.". On inflation outlook, which...

Dollar Powers Up as Risk Aversion Intensifies on Coronavirus Resurgence

Risk aversion continues to dominate the markets, on concern of another wave of coronavirus infects, as the Northern Hemisphere is entering in fall and winter. US stocks closed notably lower after brief initial rebound. Asian markets follow with heavy selling, with major indices in deep red. In the currency...

SNB: Keeping a Rate Bullet in the Chamber

The Swiss National Bank (SNB) will conclude its meeting at 07:30 GMT Thursday, and with Switzerland having fallen back into deflation, markets are pricing in a 30% chance for a small rate cut. That said, the SNB already boasts the lowest rates worldwide, so it is unlikely to cut...

SNB Preview : FX Intervention the Key Monetary Policy Tool to Curb CHF’s Strength

We expect SNB to leave the policy rate unchanged at -0.75%. While it does not rule out the possibility of further rate cut, the central bank's main tool is FX intervention to curb excessive strength in Swiss franc. Economic contraction in 2Q20 turned out to be less severe than...

Week Ahead – Tracking the Recovery: Is Europe Lagging the US?

The latest flash PMI releases will dominate the economic agenda next week as the recovery in the United States appears to be picking up a gear, while the European rebound may have hit a snag. The tables have been turning lately in the US vs Eurozone recovery story, threatening...

Dollar Shrugs Income and Spending Report, Selloff Continues

Fed chair Jerome Powell inspired a fresh round of Dollar selloff which his Jackson Hole speech, which carries on to today. Stronger than expected personal income and spending, as well as core inflation reading provide little support. Though, for now, the decline appears to be mainly centered against commodity...

USD/CHF Jumps As KOF Barometer Soars

After a few days of coasting, the Swiss franc has sprung into action on Friday, posting considerable gains against the sagging dollar. In the European session, USD/CHF is trading at 0.9030, down 0.67% on the day. Swiss KOF Economic Barometer rises sharply The KOF Economic Barometer was up sharply in August,...

Swiss KOF rose to 110.2, upswing phase of V-shaped recession

Swiss KOF Economic Barometer rose to 110.2 in August, up from 86.0, well above expectation of 90.0. It's the third straight month of rise, and it's now well above long-term average. KOF also said, "the Swiss economy is in the upswing phase of what appears for the time being...

Dollar Tumbles as Fed Adopts Average Inflation Targeting to Allow Inflation Overshoot

Dollar appears to have finally taken a side, the downside, with Fed chair Jerome Powell's Jackson Hole speech. In short, Fed is now adopting a "flexible form of average inflation targeting", to achieve inflation that "averages 2 percent over time". Therefore, following periods when inflation has been running below...

Swiss GDP contracted -8.2% in Q2, relatively limited in international comparison

Swiss GDP contracted -8.2% qoq in Q2, slightly better than expectation of -8.7% qoq. That's the biggest decline since records of quarterly data began in 1980. Comparing to Q4 2019, before the pandemic, GDP slumped by a total of -10.5% in H1 2020. SEO said, "domestic economic activity was...

Switzerland’s Trade Surplus Widened In July

For the 24 hours to 23:00 GMT, the USD declined 0.80% against the CHF and closed at 0.9072. In economic news, Switzerland's trade surplus widened to CHF3.4 billion in July, compared to a revised surplus of CHF3.2 billion in June. In the Asian session, at GMT0300, the pair is trading at...

Swiss Franc Trading On A Weaker Footing This Morning

For the 24 hours to 23:00 GMT, the USD rose 1.26% against the CHF and closed at 0.9145. In the Asian session, at GMT0300, the pair is trading at 0.9152, with the USD trading 0.08% higher against the CHF from yesterday’s close. The pair is expected to find support at 0.9060,...

Swiss Franc Trading On A Weaker Footing This Morning

For the 24 hours to 23:00 GMT, the USD declined 0.41% against the CHF and closed at 0.9031. In the Asian session, at GMT0300, the pair is trading at 0.9036, with the USD trading 0.06% higher against the CHF from yesterday’s close. The pair is expected to find support at 0.9009,...

Swiss Franc Extends Its Gains In The Asian Session

For the 24 hours to 23:00 GMT, the USD declined 0.29% against the CHF and closed at 0.9068. In the Asian session, at GMT0300, the pair is trading at 0.9054, with the USD trading 0.15% lower against the CHF from yesterday’s close. The pair is expected to find support at 0.9037,...