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The Swiss economy grew by only 0.3% in Q1 2011, falling short of expectations for a growth rate of 0.6%. USD/CHF, is bouncing off all time lows and moving higher, still capped by resistance.

Switzerland had a great 2010, with growth rates at almost 1% per quarter. But now, the strong value of the Swiss franc made Swiss exports less competitive. In addition, some global slowdown in Q1 also hurt growth.

USD/CHF made another run for the low 0.8463 levels early in the Asian session, but retreated towards the release of GDP. The rise accelerated afterwards. It’s still capped by the previous all time low of 0.8553 and currently trades at 0.8530.

Also in Switzerland, the  UBS Consumption Indicator came out weaker than last month: 1.59 points instead of 1.69 (revised figure).

For more on the franc, see the USD/CHF Forecast.