USDCHF – Can Improved Swiss GDP Ignite Correction?

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%.

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

Vladimir Ribakov

Following 11+ years of trading experience, trading my own accounts as well as for hedge funds and brokerages, I have decided to fulfill my destiny and to personally mentor Forex and Commodities traders. When I released the “Broker Nightmare” (software that hides trades from brokers) 8 years ago, I found an overwhelming number of frustrated people who genuinely wanted to learn how to trade the Forex market, but instead found themselves scammed and misled. Over the years I have also release other trading systems based on my trading strategies, and met a lot of people on my worldwide Forex seminars. We’ve formed a close Forex community and we meet once or twice a year in various locations in Europe.