The USD CHF met with resistance overnight as the better than expectedSwiss UBS consumption indicator rose in March. Traders read this an anindication that the downtrend witnessed in private consumption wasstopping for the time being.
The USD CHF met with resistance overnight as the better than expected Swiss UBS consumption indicator rose in March. Traders read this an an indication that the downtrend witnessed in private consumption was stopping for the time being.
Trader appetite for risk picked up following the release of two friendly U.S. economic reports. The first report showed better than expected housing prices which gave traders a reason to believe the U.S. economy may be bottoming. The second report was an increase in consumer confidence that was likely a reaction to the rally in equities.
Last week’s news that Credit Suisse posted better than expected earnings gave rise to optimism that other Swiss banks would follow suit and post gains.
The key to determining the direction of this market is still the Swiss Franc’s relationship to other currencies. It is no secret that the Swiss National Bank wants a lower currency to help encourage exports and to dimish the threat of deflation. This means that its gains will likely be limited by the threat of an intervention.