Forex News: Swiss Economic Indicator Falls to an 8-Month Low
THE TAKEAWAY: The KOF Swiss Leading Indicator fell more than expected to 1.05 -> Swiss economy saw a return to growth in Q3 -> Swiss Franc trading unchanged
The Swiss KOF leading economic indicator fell to an 8 month low in January. The KOF indicator was reported at 1.05, much lower than expectations for 1.20 and down from last month’s revised 1.29 survey result.
The KOF economic indicator is intended to predict economic performance for about six months into the future, and the index works with a neutral 0.00 scale. The Swiss economy returned to growth in Q3 with a 0.6% rise in GDP, and Franc investors will be looking for signs of continued economic expansion. Earlier today, the Swiss UBS consumption indicator rose to 1.34.
The Swiss Franc did not significantly react to the indicator in trading against the Euro. EUR/CHF might now see resistance by the 2.5 year high recently set at 1.2568, while support may be seen at a recent support line around 1.2362.
EURCHFDaily: January 30, 2013
Chart created by Benjamin Spier using Marketscope 2.0
-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to bbspier@fxcm.com .
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