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%.
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
