The Swiss franc fell to its lowest level against the dollar and the euro so far today, after a report by the Swiss KOF economic research institute showed that the economic index fell to its worst level since August 2009.
The KOF index is based on 12 economic indicators and is designed to predict the direction of the economy over the following 6 months.
The index declined to 0.35 in November from 0.8, worse than forecasts for 0.63. The data give evidence that the Swiss economy cannot escape the European growth slowdown. The strong Swiss franc has taken a toll on the Switzerland’s exports making too expensive for other countries.
The focus turns to tomorrow’s GDP figures for the third quarter, which are expected to show signs of stagnation in the Swiss economy. The second quarter saw a 0.4 percent gain in growth, but economists forecast this quarter to slow down to a 0.2 percent gain only.
EURCHF jumped around 15 pips after the KOF data to a session high of 1.2285 while USDCHF peaked at 0.9250 by 11:00 GMT.