Swiss Franc Overlooks Disappointing GDP Data
- Swiss 4Q GDP 0.2% q/q vs. 0.4% Expected
- Franc Little-Changed After Data Release
- SNB Sees Slow Inflation Rise Through 2015
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Swiss GDP disappointed in the fourth quarter, showing the economy expanded 0.2 percent from the previous period to yield the smallest gain in over two years. The year-on-year growth rate unexpectedly slowed to 1.7 percent from a revised 2.1 percent in the third quarter.
The Swiss Franc showed a muted response to the release as Switzerland's low inflation continues to plague policymakers. The Swiss National Bank foresees its baseline inflation rate below 1 percent through, and well below its 2 percent target rate through the next two years. DailyFX Strategist Ilya Spivak argues that this translates into policy standstill for the time being, eroding the GDP report’s market-moving potential.
USD/CHF 5-Minute Chart. February 27, 2014
Charted created by David Maycotte using Marketscope 2.0.
-- Written by David Maycotte, DailyFX Research Team. Questions, comments or concerns can be sent to firstname.lastname@example.org.
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