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.
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