The Swiss franc weakened against major counterparts after the release of a disappointing ZEW Economic Expectations report.
The ZEW survey is compiled by a survey of institutional investors and analysts which asks respondents to rate the relative 6-month economic outlook for Switzerland. The index is considered to be a leading indicator of economic health since investors and analysts are highly informed of the economy by virtue of their job, and changes in their sentiment can be an early signal of future economic activity.
If the index is above 0.0 it indicates optimism and below indicates pessimism.
The ZEW index fell 7.7 points to give a reading of minus 72.0, versus the previous month’s minus 64.3.
The franc fell against the US dollar, sterling and Japanese yen and even the euro following the report.
Earlier in the day, a separate report showed Swiss producer and import prices declined more than expected by economists in November.
The declining economic confidence indicates that the Swiss economy is showing signs of a deepening economic slowdown as exporters are struggling with a strong franc.
The Swiss National Bank has been struggling to curb franc strength and on September 6 it placed of floor of 1.20 francs to the euro.