USDCHF Switzerland’s 2Q QoQ GDP at 0.6% vs 0.4% expected
- Switzerland’s 2Q The US Dollar is trading at 0.9794 against the Swiss Franc at 09:40 GMT this morning, 0.01% lower from the New York close.
- Data indicated that Switzerland’s GDP advanced more than expected on a quarterly basis in 2Q 2016, while consumer price index dropped as expected on a monthly basis in August.
- The pair traded at a high of 0.9810 and a low of 0.9783 this morning. Yesterday, the USD traded 0.04% lower against the CHF in the New York session and ended at 0.9795. The pair is expected to its find support at 0.9777 and its first resistance at 0.9813.
Switzerland’s 2Q The Swiss Franc saw a slight positive response
According to estimates released today by the Swiss State Secretariat for Economic Affairs (SECO), Switzerland’s 2Q’16 Gross Domestic Product (GDP) beat expectations.
The QoQ figure printed 0.6%, above the 0.4% quarterly growth expected by economists, and the prior quarter in which the economy grew a revised 0.3%.
The year-on-year change in GDP came well above expectations; the report showed the economy grew at 2.0%, above the expected reading of 0.8%, and the prior revised 1.1% print.
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Looking into the report, SECO said that the figures were underpinned by foreign trade as well as government consumption, while household consumption expenditure stagnated, and investment in construction and equipment fell slightly.
As noted before, the rebound from 0.9536 should have completed at 0.9884, ahead of 0.9949/55 resistance zone. Intraday bias remains on the downside for 0.9536 support. Overall, price actions from 0.9443 are viewed as a consolidation pattern. Break of 0.9949/55 resistance zone is needed to confirm completion of the fall from 1.0327. Otherwise, such decline is mildly in favor to resume for 0.9443 and below.
In the bigger picture, no change in the view that choppy fall from 1.0327 is seen as a corrective move. Rejection from 0.9955 resistance suggests that it’s still in progress for another low below 0.9443. In that case, we’d expect strong support between 0.9072 and 0.9256 support to contain downside and finally bring reversal. Break of 0.9955 will target a test on 1.0327 high again.Click here for reuse options!
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