Swiss Economy Expanding at a Faster Pace According to Indicator
THE TAKEAWAY: KOF Swiss economic barometer reported at 1.16, beats expectations -> Forecasts GDP growth for the fourth straight month -> CHF up on EU summit euphoria
The Swiss economy continues to grow at a faster rate despite the pressures of the nearby European debt crisis.
That was the conclusion of the KOF economic barometer which showed a fourth month of positive results. The June survey was reported at 1.16, beating expectations for .78 result and higher than last month’s revised 0.80 survey.
The KOF barometer predicts GDP growth for the upcoming 8 months, and any result above zero shows growth. The monthly survey tracks changes in manufacturing, judgments of the financial industry, and changes in construction.
The economic barometer had no noticeable effect on markets as the Franc didn’t gain against the Dollar following the report. Risk correlated assets like CHF rallied against the Dollar early this morning, as initial agreements were announced at the two day EU summit. USD/CHF is trading around .9550 as of 07:25 GMT.
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