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Swiss Leading Indicator Fall as Pessimistic Growth Outlook
Friday, 28 November 2008 09:53:56 GMT  |  Geng Chen, DailyFX Research
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Switzerland’s leading KOF indicator dropped to the lowest level in at least five years. The indicator predicts the economy’s direction about six month ahead fall to -0.05 from revised 0.28 reading in October and far below economists expected of 0.20. This is the first time the KOF index has turned negative since June 2003 and highlights the sharply deteriorating conditions in the Swiss economy. The SNB has already delivered three intra-meeting rate cuts, slashing the 3 month Libor target rate to 0.5-1.5% and the central bank is likely to cut the target rate further as downside risk to inflation increases. Meanwhile, Swiss Franc (CHF) dipped after the release, EUR-CHF traded back up to 1.5500 after it dipped in to 1.5475 on a softer eur tone, while USD-CHF extended its gains to trade at 1.2068 highs.

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