News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Oil - US Crude
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Franc Finds Support as Swiss Retail Sales Grow at Record Pace

Franc Finds Support as Swiss Retail Sales Grow at Record Pace

Benjamin Spier, Technical Strategist

THE TAKEAWAY: Swiss retail sales for May grow 6.2% from 2011 -> SNB president says EUR/CHF floor necessary to fight deflation -> Franc finds support against USD

The Swiss retail sales annual growth rate hit a 3 year high during the month of May, coming in 6.2% higher than May 2011. Retail sales also grew at a real 1.0% rate from the month of April, according to the Swiss Federal Statistical Office.

Retail sales of food, drinks and tobacco grew 3.7% (real) when compared to sales during May 2011, non-food sectors grew 6.8% over the same period.

Following the impressive boost in retail sales, the Swiss Purchasing Managers’ Index for manufacturing was reported at 48.1, thereby showing a decline. However, the PMI was better than expected and indicates that the drop in Swiss manufacturing is slowing.

The strong retail sales come only days after the KOF economic indicator showed that the Swiss economy is expanding at a faster pace. The Swiss economic growth is surprising when compared to its neighboring Eurozone and British economies, which are suffering from the Euro debt crisis.

Just yesterday, Swiss National Bank President Thomas Jordan told the SonntagsBlick newspaper that the bank will continue to enforce the 1.2000 floor in Euro/Franc trading to prevent deflation. Despite growth in the Swiss economy, the flee from the Euro into the Franc as the debt crisis worsens, continues to place deflationary pressures on the Franc, which can hurt Swiss exports to its neighbors in the region.

The Swiss Franc strengthened against the US Dollar following the retail sales news, USD/CHF fell towards .9500 support. Earlier today, the pair corrected higher from the major decline that happened during Friday’s trading, as risk correlated currencies soared on the news of agreements made during the EU summit.

Franc_Finds_Support_as_Swiss_Retail_Sales_Grow_at_Record_Pace__body_usdchf.png, Franc Finds Support as Swiss Retail Sales Grow at Record Pace

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES