Euro-Zone Employment Extends Five Month Decline, Swiss Producer & Import Prices Tumble in February
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USD/CHF – Producer & Import prices in Switzerland unexpectedly pushed lower in February, with the reading shedding 0.3% after climbing 0.3% the month prior, while economists were expecting a rise of 0.1%. Meanwhile, annualized prices slid 1.0% amid forecasts of -0.6%, the Federal Statistics Office in Neuchatel announced today. Taking a closer look at the report, import prices tumbled from January’s gain of 0.4% to February’s decline of 0.3%. Looking ahead, the Swiss National Bank is widely forecasted to keep its interest rates unchanged at 0.25%, according to the Credit Suisse overnight index swaps, and the Franc should see further gains with a cap at the 200-day SMA on the back of a continuation of risk appetite.
EUR/USD– Employment in the Euro-Zone extended its five month decline, with the reading tumbling 0.2% in the fourth quarter as manufactures and builders continue to cut jobs amid uncertainty in the economy. At the same time, the regions annualized employment sank 2.0% from a downward revision of -2.2%, the statistics office in Luxembourg publicized today. The breakdown of the report illustrated that construction payrolls tumbled 0.4%, while financial companies employed 0.1% fewer staff in the last three months of 2009. Indeed, the decline in payrolls for the quarter was the smallest decline since the third quarter of 2008, however, unemployment in the region is at its highest in more than 11 years. Going forward, the European Central Bank is widely expected to keep its borrowing costs unchanged at its next interest rate decision, and policy makers may keep rates on hold throughout the second-half of the year as they aim to balance growth and inflation. To discuss this and other topics, please visit the EUR/USD forum.
Written by Michael Wright, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.