THE TAKEAWAY: Swiss GDP rises 0.2% in Q4, better than expected -> Swiss government forecasts 1.3% economic growth in 2013 -> Little CHF reaction
Swiss gross domestic product rose 0.2% in the fourth quarter, beating expectations for no change in GDP but worse than the 0.6% rise in GDP in Q3. The economy expanded by 1.4% from Q4 2011, according to the State Secretariat for Economic Affairs.
Private consumption increased by 1.1% over the fourth quarter. Net exports of goods and services contributed negatively to GDP growth, as exports of goods fell by 2.1%, while services exports increased by 4.3% over the quarter. Swiss GDP grew 1.0% over 2012 at constant prices.
The Swiss government predicted 1.3% growth in 2013 during a December forecast. Signs of improved Swiss economic growth are Franc positive. However, the Franc did not react significantly to the better than expected GDP release.
The Franc has gained significantly against the Euro over the past two weeks on widespread Euro weakness. EUR/CHF may not have fallen following today’s release because the pair is trading much closer to the SNB enforced 1.200 floor than it has in previous weeks. Support might now be provided at 1.2189, by the 76.4% Fibonacci retracement of the rally from the January low to the January high.
EURUSD Daily: February 28, 2013
Chart created by Benjamin Spier using Marketscope 2.0
-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to firstname.lastname@example.org .