- Swiss economy expanded by 1.1% on a yearly basis in Q3.
- US Dollar Index stays calm above 98.30 on Thursday.
- Market action is likely to remain subdued due to Thanksgiving Day holiday in US.
After coming within a touching distance of the critical parity mark, the USD/CHF pair retreated slightly as the upbeat data from Switzerland helped the CHF stay resilient against its rivals. As of writing, the pair was virtually unchanged on a daily basis at 0.9990 and is likely to continue to move sideways as markets come to a halt on Thanksgiving Day in the US.
Swiss economy gains traction in Q3
The Gross Domestic Product (GDP) in Switzerland expanded by 0.4% on a quarterly basis in the third quarter and lifted the annual growth rate up to 1.1%, the State Secretariat for Economic Affairs (SECO) announced on Thursday. Both of these readings came in higher than analysts’ estimates.
Commenting on the data, “This growth was supported primarily by the export of chemicals and pharmaceuticals as well as energy,” noted ING analysts. “Without the boost from these two sectors, GDP growth would have been close to zero. Overall, the cyclical slowdown was confirmed.”
On the other hand, after climbing to a fresh two-week high of 98.44 on Wednesday, the US Dollar Index stays in a tight consolidation channel above 98.30, forcing the pair to stay in its daily range.
The KOF Leading Indicator will be published from Switzerland from tomorrow and there won’t be any macroeconomic data releases featured in the US economic docket, which suggests that the pair is likely to remain below parity ahead of the weekend.
Technical levels to watch for
Share
