Share:
  • Swiss franc climbs to 4-month high.

  • Swiss GDP rises 0.3%.

  • US ISM Manufacturing PMI expected to rise slightly.

The Swiss franc is lower on Friday. In the European session, USD/CHF is trading at 0.8723, down 0.22%.

Swiss franc continues to climb

The Swiss franc continues to power higher against a slumping US dollar. USD/CHF has fallen 1% this week and plunged 3.8% in November. On Thursday, USD/CHF touched a low of 0.8684, its lowest level since July 31.

The Swissie’s rapid appreciation is likely causing sleepless nights at the Swiss National Bank. Policy makers at the central bank follow the exchange rate carefully and have not hesitated to intervene in the currency markets as a monetary policy tool. The stronger Swiss franc has helped dampen inflation but the SNB doesn’t want the currency to be too strong since that hurts the crucial export sector. If the Swiss franc continues to lose ground, the SNB could respond with some verbal intervention and express concern about the Swiss franc’s high value.

Swiss inflation is in a good place, within the 0%-2% target, but the economy remains weak. Swiss GDP rose by just 0.3% q/q in the third quarter, up from a revised -0.1% in Q2 and above the consensus estimate of 0.1%. The services sector was the main driver of growth as manufacturing was flat and consumer spending posted modest growth. The GDP report noted that the “international environment remains challenging”. Global demand remains weak, and the EU, which is Switzerland’s largest export market, posted 0% growth in the third quarter.

The US wraps up the week with the ISM Manufacturing PMI. The manufacturing sector has been in a deep slump and the PMI has indicated contraction for twelve consecutive months. The PMI is expected to improve to 47.6 in November, compared to 47.6 in October. A reading below 50 indicates contraction.

We will also hear from Federal Reserve Chair Powell later today. Investors will be looking for hints about upcoming rate decisions. Powell has stuck to his script of a ‘higher for longer’ rate policy, but the markets have fully priced in a rate cut by May, up from 65% a week ago.

USD/CHF technical

  • USD/CHF is testing resistance at 0.8736. Below, there is support at 0.8650.

  • 0.8736 and 0.8774 are the next resistance lines.

USDCHF

Share: Feed news

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities.

Opinions are the authors — not necessarily OANDA’s, its officers or directors. OANDA’s Terms of Use and Privacy Policy apply. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

EUR/USD stabilizes above1.0800, looks to post weekly gains

EUR/USD stabilizes above1.0800, looks to post weekly gains

EUR/USD continues to trade in a tight channel above 1.0800 in the second half of the day on Friday, as the improving risk mood makes if difficult for the USD to gather strength. The pair remains on track to snap a five-week losing streak.

EUR/USD News

GBP/USD clings to modest daily gains above 1.2650

GBP/USD clings to modest daily gains above 1.2650

GBP/USD trades in positive territory above 1.2650 in the American session on Friday. The bullish opening in Wall Street doesn't allow the USD to gather strength and helps the pair stay on track to close higher for the fifth consecutive day.

GBP/USD News

Gold holds steady above $2,020 as US yields edge lower

Gold holds steady above $2,020 as US yields edge lower

Gold regained its traction and stabilized above $2,020 after falling below this level during the European trading hours. The benchmark 10-year US Treasury bond yield is down nearly 1% on the day below 4.3%, allowing XAU/USD to keep its footing heading into the weekend.

Gold News

Ethereum price risks decline as increasing exchange supply raises chances of profit taking

Ethereum price risks decline as increasing exchange supply raises chances of profit taking

Ethereum price crossed $3,000 several times this week but the altcoin failed to sustain above this key level, raising concerns regarding its price trend. ETH price faces the risk of decline as the supply of the altcoin on exchanges is on the rise. 

Read more

Up go stocks, down go bonds

Up go stocks, down go bonds

We knew that yesterday was going to be a good day – at least for the stock markets, given that Nvidia defied the expectations that it would - maybe – fail to deliver $20bn sales in the latest quarter. 

Read more

Majors

Cryptocurrencies

Signatures