Swiss Franc Ignores Upbeat KOF Economic Barometer Gauge
- KOF Swiss Economic Barometer Crosses 2.00 Threshold
- Swiss Franc Continues to Falls Despite Upbeat Release
- SNB Unlikely to Budge on Strong Data Given CPI Outlook
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A report from Switzerland’sKOFEconomic Institute pointed to a favorable outlook for the nation’s economy. The KOF Economic Barometer gauge climbed for the 12th consecutive month to 2.03 in February. January’s higher revision of 2.01 shows the indicator crossed the 2.00 threshold for the first time since July 2011.
The Swiss Franc largely looked past the outcome, continuing a previously initiated move lower against the US Dollar. The markets’ dismissive attitude may reflect the report’s limited implications for SNB monetary policy. Pushing the economy toward on-target 2 percent inflation remains the central bank’s top priority. Meanwhile, its own forecast estimates headline price growth below 1 percent through 2015. That means the upbeat KOF print isn’t likely to be telegraphing a hawkish shift in the SNB’s posture, so its ability to lift the Franc is largely absent.
USD/CHF 1-Minute Chart. February 28, 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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