Swiss Investor Confidence Rises, But is Still Negative
THE TAKEAWAY: ZEW Credit Suisse expectation for economic growth survey reported at -33.3 -> Swiss economy continues to show resilience -> Swiss Franc trading steady
Swiss investor confidence rose in August, but remained overall negative for the fourth month, according to the ZEW Credit Suisse expectation for economic growth survey. The survey was reported at -33.3, beating July’s -42.5 result. However, the current economic situation survey was reported at 11.0, still positive but lower than July’s 18.4 survey result.
The improving investor confidence comes at a time when the Swiss economy has continued to perform well in 2012 despite the nearby Euro debt crisis. Two weeks ago, Swiss retail sales were reported as improving for the ninths straight month. The Swiss National Bank said they will continue to provide a 1.2000 floor in EURCHF trading so as to prevent the risks from an overly strengthened Swiss Franc.
The Swiss Franc did not trade significantly higher against the US Dollar following the improved survey result. USDCHF is currently testing a 3-week long downward trend line, which could provide resistance around .9793.
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