Swissie yawns as KoF barometer slides

The Swiss franc has been relatively quiet in the second half of January. USD/CHF is almost unchanged on Friday, trading at 0.8880.

KOF Economic Barometer slides below 100

The KoF Economic Barometer, a key indicator of business confidence, has started the new year in very poor form. The index fell to 96.5 in January, down sharply from 104.3 in the previous release. The soft reading caught the markets by surprise, as the consensus estimate stood at 102.2. The KOF barometer has dropped below its long-term average of 100 for the first time since July. The sharp decline can be attributed to a resurgence in Covid, which has led to weaker conditions in the manufacturing and services sectors. The Swiss central bank (SNB) would love nothing more than the Swiss franc to depreciate, as the Swissie surged in H2 of 2020. Unfortunately for bank policymakers, investors have shrugged off the gloomy economic news and the Swiss franc remains almost unchanged after the KOF release.

Earlier in the week, another Swiss indicator pointed to weakening economic conditions. Credit Suisse Economic Expectations, which gauges confidence levels amongst institutional investors and analysts, slowed to 43.2 in December, down from 46.8 beforehand.

Over in the US, the only releases are tier-2 events, with an expectation for subdued numbers. On the consumer front, Personal Income has struggled, with three declines in the past four releases. A weak gain of 0.1% is expected for December. Personal Spending posted its first decline in seven months in November, at -0.4%. An identical gain is expected in the December release. The Core PCE Price Index, which is believed to be the Fed’s preferred inflation gauge, has been stuck at zero for two successive months and is expected in at 0.1% in the December release.


USD/CHF Technical


  • The first line of support is 0.8819. Below, there is support at 0.8785
  • USD/CHF is putting pressure on resistance at 0.8906. This is followed by resistance at 0.8959
  • The pair continues to put pressure on the 50-day moving average (MA). A close above this level is a bullish technical sign

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

Market Analyst at OANDA
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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