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
More View more
Forex News: Swiss Government Cuts the 2013 Growth Forecast

Forex News: Swiss Government Cuts the 2013 Growth Forecast

Benjamin Spier, Technical Strategist

THE TAKEAWAY: SECO cuts the Swiss GDP forecast for 2013 -> Inflation prediction also lowered for 2012 and 2013 -> No significant Franc reaction

The Swiss government cut its forecast for GDP growth in 2013. According to State Secretariat for Economic Affairs (SECO), the Swiss economy will only expand by 1.3% in 2013, as the prediction was lowered from a previous 1.4% annual growth. SECO kept the 2012 growth prediction at 1.0% and is now predicting 2% growth in 2014.

SECO also cut its predicted inflation rate for 2012 to -0.7% from a previous forecast for -0.5% inflation. SECO expects consumer prices to only rise 0.2% in 2013, down from 0.5%, and inflation to continue at 0.2% in 2014. It also forecasted a 3.3% unemployment rate in 2013, as well as a 1.3% increase in household spending over the same year, which was slightly higher than a previous prediction of 1.2% growth in household spending in 2013.

The Swiss GDP grew 0.6% in Q3, following a 0.1% decline in Q2. Later today, the Swiss national bank will set the interest target rate for December, 0.00% is expected.

The news of the lower forecast did not significantly affect Franc trading in forex markets. EURCHF is currently trading around 1.2120, and resistance could be provided around a 3-month high of 1.2167, and support could be provided by a support line around 1.2034.

EURCHF Daily: December 13, 2012

Swiss_Government_Cuts_the_2013_Growth_Forecast_body_eurchf.png, Forex News: Swiss Government Cuts the 2013 Growth Forecast

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

DISCLOSURES