THE TAKEAWAY: ZEW Credit Suisse Survey for Swiss Economic growth at -28.9 -> Franc weakened by a declining economy -> Franc trading unchanged
The ZEW Credit Suisse survey of expectations for Swiss economic growth rose to a five month high, but still reveals 6 straight months of negative expectations. The survey for October came in at -28.9, up from September’s -34.9 survey result. The survey for current situation was reported at -4.4 in October, down from 4.6 in September.
The survey for economic expansion aims to predict growth in the upcoming six months. The Swiss economy contracted in the second quarter for the first time since Q3 2011, as GDP dropped 0.1% in Q2. Since reporting the negative GDP in early September, the Swiss Franc retreated from the 1.2000 ceiling against the Euro, and EURCHF has traded between 1.2150 and 1.2050 over the past six months.
The Franc did not significantly react to the survey and continued to trade below 1.2100 against the Euro. The range between 1.2148 and 1.2057 could continue to provide resistance and support.
EURCHF 15-minute: October 17, 2012
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