Swiss Franc Claws Up To 90 Line On U.S. GDP |

The Swiss franc is up for a second straight day. In North American trade, is trading at 0.9000, up 0.24% on the day.

Swiss Franc Rebounds On Strong Economic Sentiment Data

The Swiss franc has made strong inroads in recent weeks against a U.S. dollar that continues to struggle. The dollar posted sharp gains in the first quarter, but has reversed directions. Since April 1, USD/CHF is down 4.8% and has surrendered most of the gains accrued in Q1.

The Swiss central bank (SNB) does not want to see the Swiss franc continue to appreciate, since a higher-valued Swiss franc makes Swiss exports more expensive. The SNB also prefers to see limited movement from the Swissie, so that price movement remains muted. The SNB has been actively purchasing U.S. dollars in order to prevent the exchange rate from continuing to rise. However, with the U.S. dollar showing prolonged weakness and the Federal Reserve insisting that it will not tighten policy anytime soon, the SNB may have a tough time trying to prevent the Swissie from appreciating further.

U.S. GDP, Durable Goods Miss

The U.S. released a data dump earlier in the day. The results were mixed and the dollar edged lower, as the Swiss franc has clawed back up the symbolic 90-level.

U.S. second-estimate GDP came in at 6.4%, confirming the initial read but shy of the forecast of 6.5%. Headline durable goods slowed to 1.0%, down from 1.6%. surprised with a decline of 1.3%, down from +0.5% and much worse than the consensus of +0.8%. On the employment front, U.S. dropped to 406 thousand, down from 444,000.

In Switzerland, the trade balance fell to CHF3.82 billion, down from CHF5.7 billion and shy of the forecast of CHF4.2 billion.

USD/CHF Technical

  • USD/CHF faces resistance at 0.9033 and 0.9087
  • On the downside, there is weak support at 0.8939. Below, there is support at 0.8899

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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