Some important information about the state of Swiss economy will become known this week, including domestic consumption for January, as per UBS, which is an inflation indicator, which is composed of the several components. This index incorporates the data on the sales of new cars, activity in the retail sales sector and consumer confidence index (will become known on Wednesday в 09:00 (GMT+2). On Thursday at 10:15 (GMT+2) the data on the industrial production in Q4 will be released. (In Q3 this index fell by 3.1% and 5.1% on annual basis).

Swiss employment rate in Q4 will be released on Friday (it is expected that the index will remain unchanged compared to the number of 4.24 million in Q3).

According to the provided data economic situation in Switzerland is deteriorating. It became known last week that economic expectation index ZEW has dropped (-5.9 in February and -3.0 in January). This index evaluates business climate in the country.

Swiss National bank believes that the national currency is overvalued, and this fact prevents to increase the volume of exports of the country to China and Eurozone.

In December, SNB left interest rate on deposits unchanged at the negative level of -0.75. The Bank is going to continue to stimulate production and soften economic conditions in the country.

Next meeting of SNB on monetary policy is scheduled for 17 March. On Tuesday (13:15 GMT+2) pay attention to the speech by the president of SNB, Thomas Jordan, which can affect the price of Swiss franc and the pair USD/CHF. If Mr. Jordan confirms further monetary easing policy of SNB, the pair USD/CHF will go up.

The US data, scheduled for the release this week (business activity index in the service and manufacturing sectors, as per Markit Economics, business activity index in the service sector

(Wednesday 16:45 GMT+2), orders for durable goods (Thursday 15:30 (GMT+2)), expenses on personal consumption and price index of internal acquisitions in Q4 and annual data on the US GDP for Q4 (Friday 15:30 – 17:00 GMT+2)) can have strong impact on the currency pair.

In general, the pair USD/CHF is in the uptrend and long positions are recommended.




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