Swiss Franc Nears Critical Level versus Euro
Recent price action has emphasized that the Swiss Franc remains quite sensitive to moves in key risky asset classes, and traders should primarily watch moves in the US S&P 500 and similarly significant risk barometers in the days ahead. In terms of specific event risk, markets will keep an eye on upcoming KOF Leading Indicator data and the following day’s SVME Purchasing Managers Index report. The Swiss State Secretariat of Economic Affairs (SECO) recently upgraded its forecasts for domestic economic growth through the medium term—likely leading to similarly bullish calls for upcoming financial economic data. Indeed, consensus forecasts ahead of the often market-moving Swiss KOF report calls for the first positive reading in 12 months. Suffice it to say, a disappointing result could easily hurt the recent wave of optimism for the domestic economy. The following SVME Purchasing Managers Index is likewise expected to improve to its strongest levels in over a year, and disappointments could similarly limit further CHF advances.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.