CHF Increases Slightly Following KOF Report

By Dan Eduard – The Swiss economy grew at a rate higher then forecasted in January, but that still may not be enough for the country sustain its economic recovery. This is according to the latest KOF Economic Barometer released earlier today. The reading of 1.77 represented a slight increase compared to December’s figure of 1.73. Despite the increase, analysts are warning that a number of sectors in the Swiss economy, like consumption and construction, are either slowing down or in a downswing.

The marketplace seemed to react positively to the news, with CHF making gains against both the U.S. Dollar and Euro. EUR/CHF dropped almost 20 pips to its current level of 1.4460 following the news release. USD/CHF similarly dropped and is currently trading around the 1.0500 level.

CHF traders will want to pay attention to the SVME PMI Report set to be released on Monday. The report is a survey of 200 business managers and deals with a wide variety of business conditions. While analysts do not foresee a major shift in the results of the survey from last month, any increase may help the Swiss Franc in trading.

Forex Market Analysis provided by Forex Yard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.