USD/CHF higher on KOF Economic Barometer

USD/CHF has posted considerable gains on Wednesday, recovering most of the losses from Thursday. In the European session, the pair is trading at 0.9226, up 039% on the day.

KOE Economic Barometer Climbs

There was positive news earlier on Wednesday, as the KOF Economic Barometer rose to 113.8 in September, up from 110.2 points. This marked a 10-year high for the well-respected indicator, which forecasts the country’s economic health over the next six months. The indicator has accelerated for a fourth successive month, a sign that the Swiss economy is recovering in a V-shaped manner. Strength in manufacturing and domestic consumption contributed to the strong September data.

The Swiss franc has posted solid gains on Wednesday, as the KOF release boosted the currency. However, another economic barometer of which direction the economy is headed in the next six months pointed sharply downward in August. The Credit Suisse Economic Expectations fell to 26.2, down from 45.6 beforehand. Investors clearly preferred the good news delivered by the KOF Economic Barometer.

We could see further movement from USD/CHF on Thursday, with the release of three Swiss releases. Consumer inflation is expected to remain flat at 0.0%. Retail sales are projected to climb from 4.1% to 4.5%, while Manufacturing PMI is forecast to rise from 51.8 to 53.4 points.

 

USD/CHF Technical

  • USD/CHF is testing resistance at 0.9231. The next resistance line is 0.9269
  • There is support at 0.9173, followed by support at 0.9153
  • USD/CHF is putting downward pressure on the 10-day MA line. If the pair breaks below this line, it would be a sign of a downward trend for the pair

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.

Kenny Fisher

Kenny Fisher

Currency Analyst at Market Pulse
Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.
Kenny Fisher

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