2016-08-30 13:10:49

KOF leading index, which is considered an indicator of economic stability in Switzerland, fell below 100.0 (99.8 vs. forecasted 102.3 and 102.7 in July) in August, which is the lowest level since December 2015.

The employment indicator in Switzerland published together with the KOF index in Q2 grew by 25,000 employees (4.903 million against 4.878 million in the 1st quarter). Low unemployment, which has remained in the range of 3.5% -4.0% for a long time, is still one of the lowest in the world, which is the strength of the Swiss economy.

The Swiss franc responded rather sluggishly to the reported data.

USD/CHF pair rose sharply on Friday on the statements of the Fed's representatives regarding monetary policy prospects in the US.

"Looking ahead, the FOMC expects moderate growth in real gross domestic product (GDP), additional strengthening in the labor market, and inflation rising to 2 percent over the next few years. Based on this economic outlook, the FOMC continues to anticipate that gradual increases in the federal funds rate will be appropriate over time", said Janet Yellen during her speech at the recent economic symposium in Jackson Hole on Friday. "The case for an increase in the federal funds rate has strengthened in recent months," - added Yellen. The Fed Vice Chair Stanley Fischer expressed himself even more specifically, he believes that the US central bank may raise interest rates next month. However, Fischer added that "these are not things we know until we see the data."

In response to these statements the dollar strengthened sharply on the currency market. Today, since the opening of the trading day, the pair has continued to grow.

Traders should attention to inflation indices in Germany in August (pre-release) published at 15:00 (GMT + 3). The indices have an impact on the euro and European stocks, which will be reflected in the movement of EUR/USD and other, particularly European, dollar pairs. At 16:00 housing price index in the United States from Standard and Poor's agency in June is published, which is an important indicator of the American real estate market, and at 17:00 - consumer confidence level in the US in August, reflecting the confidence of consumers in the country's economic development.

On Friday (15:30 GMT +3) Non-Farm PayRolls in the USA (NFPR) for August will be published. The growth rate is expected at 180,000 new jobs. Strong data on the number of jobs will increase the likelihood of an early rate hike, which will strengthen the US dollar, and vice versa.

USD/CHF: the prospects for the Swiss economy have deteriorated. Fundamental analysis for 30.08.2016