USDCHF – Can Improved Swiss GDP Ignite Correction?

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  • Swiss Franc started a minor correction phase against the US dollar after the release of the Swiss GDP.
  • Swiss Gross Domestic Product, released by the State Secretariat for Economic Affairs SECO registered an increase of 1.2% in the second quarter of 2015, whereas the market was expecting it to rise by 0.9%.
  • In terms of the quarterly change, there was a rise of 0.2%, compared with the expectation of a 0.1% decline.
  • Swiss GDP

    Earlier during the London session, there was a major release lined up in Switzerland. The Gross Domestic Product, which is a measure of the total value of all goods and services produced by Switzerland was released by the State Secretariat for Economic Affairs SECO. The market was expecting a rise of 0.9% in the second quarter of 2015, compared with the same quarter a year ago. However, the outcome was a bit on the higher side, as the Swiss GDP grew by 1.2%. This was also on the higher side when compared with the last increase of 1.1%.

    Swiss GDP
    When we look at the quarter-over-quarter change, then the Gross Domestic Product grew by 0.2% in the second quarter of 2015, compared with the preceding quarter. This was again better, as the forecast was of a 0.1% decline.

    The report also highlighted the increase in the GDP, quoting that the “balance of trade in goods made a positive contribution to GDP growth because imports fell more than exports; on the other hand, the balance of trade in services had a negative impact”.

    Euro Zone Economic Confidence

    There were a few critical releases in the Euro Zone as well, including the Economic Confidence, which is a survey of consumers’ confidence in economic activity published by the European Commission. The report was positive as the confidence increased from 104.0 to 104.2 in August 2015.

    Technical Analysis – USDCHF

    After a massive decline in the USDCHF pair, there was a monster rally to trim all losses. The pair traded as high as 0.9680 where it found sellers, and after the Swiss GDP release, there is a chance of a minor correction.

    Yours,
    Vladimir

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