Swiss Retail Sales Rise Annually for the 11th Month
THE TAKEAWAY: June retail sales reported 3.7% higher annually -> Swiss economy continues to show resilience in face of the Euro debt crisis -> Franc trading slightly lower
Swiss retail sales (real) increased annually for the ninth straight month, up 3.7% in June 2012 when compared to June 2011, according to the Swiss Federal Statistical Office. The rate of increase was lower than May’s 6.4% annual sales growth, which was revised higher and set the highest growth rate in 3.5 years.
Retail sales of food, drinks and tobacco were up 2.4% (real) in June on a year-over-year basis and up 0.8% from May. The non-food sector showed no growth when compared to the previous month.
The Swiss economy has performed well in 2012, avoiding pressures from the Euro debt crisis, and has therefore become an ideal safe haven for investors. That is why Swiss 5-year bond yields turned negative at the end of May, and the 10-year benchmark bond yield continues to decline in the same direction.
USDCHF was not significantly affected by the Swiss retail sales. The pair has dipped slightly lower in today’s trading towards .9800. Possible support could be found around .9692, by an upward trend line beginning in May.
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