Swissquote Bank Research Team
Swissquote Bank Ltd
Although Switzerland’s balance of payments increased CHF 2 billion to CHF 22 billion in Q2, we expect the trend to reverse in Q3, as the US-China trade war weighs on the franc, which has appreciated against the Euro and US dollar by -2% and -2.80% since the beginning of June. Further trade uncertainties will push the CHF higher, which disadvantages Swiss exporters.
The Swiss economy grew at 3.20% in Q2, above the historical pace of 1.90%) and the Swiss National Bank’s forecast of 2%. The country’s financial account continues to drop, with both assets and liabilities declining by CHF 50 billion and CHF 60 billion amid divestments from foreign companies due to US tax reforms. EUR/CHF is currently trading at 1.1280, expected to trade sideways.
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This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
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