After a few days of coastline, the Swiss franc has started in action on Friday with a significant gain against the falling dollar. At the European session, the USD / CHF is trading at 0.9030, down 0.67% on the day.
The Swiss KOF economic barometer is rising sharply
KOF’s economic barometer rose sharply in August, providing support for strong gains for Swissie on Friday. The indicator consists of approx. 219 indicators, including bank confidence, stock price prices and consumer confidence. The barometer jumped to 110.2 in August up from 85.7 in advance. It is also easy to beat the forecast of 90.3. The KOF barometer has now risen significantly in each of the last three months. This points to a V-shaped recovery for the Swiss economy, which would mean that the economy is heading in the right direction.
Swiss GDP has fallen less severely than expected
Second quarter GDP has been a scary word for investors and traders as larger economies have had sharp declines. Switzerland’s economy fell by 8.2% in the second quarter, following a decline of 2.6% in the first quarter. Although the decline in the second quarter was the largest since records began to be stored in 1980, the decline was mild compared to many countries – in the United States, for example, GDP fell by a staggering 31.7 percent. Investors were not happy with the GDP reading as the USD / CHF was almost unchanged on Thursday.
USD / CHF technical
0.9131 is the next resistance line. Above there is resistance at 0.9171
USD / CHF broke below 0.9044 in the Asian session. is the first level of support. This is followed by support at 0.8997, just below the symbolic 0.9000 level
In the Asian session, the USD / CHF has broken below the 10-day MA line. This is a bearish signal for the couple