The Swiss KOF Economic Barometer is a composite leading indicator which measures overall economic activity and is an excellent indicator of the direction of the Swiss economy. Its publication has a major effect on USD/CHF. Here are all the details, and 5 possible outcomes for USD/CHF. Published on Wednesday at 9:30 GMT. Indicator Background The KOF Economic Barometer is an important indicator of projected of GDP growth. The index has been on a steady downward trend since May. It dropped sharply from 2.23 in June to 2.04 in July. The index has been above 2.00 since April of 2010. This is likely to change, however, with an August forecast of just 1.86. Sentiments and levels This index is forecasting a sharp decrease in August, which will likely be bad news for the Swiss franc. In addition, many currency analysts feel that the CHF is greatly overvalued, which could hurt the growth of the Swiss economy. So, the overall sentiment is bearish on USD/CHF towards this release. Technical levels, from top to bottom: .8075, .8000, .7925, .7850, .7800, .7700. 5 Scenarios Within expectations: 1.80 to 1.93: In such a case, the CHF is likely to rise within range, with a small chance of breaking higher. Above expectations: 1.94 to 2.03: An unexpected higher reading can send USD/CHF well below one support line. Well above expectations: Above 2.04: The chances of such a scenario are low. Such an outcome would prop up the CHF, and a second support line might be broken as a result with Dollar/Swiss. Below expectations: 1.73 to 1.79: A sharper decrease than forecast could cause the CHF to drift, with USD/CHF breaking higher. Well below expectations: Under 1.73: Due to concerns over a greatly overvalued Swiss franc and the sluggish Euro zone economies, a sharp decline cannot be ruled out. In this scenario, the CHF will fall and the Dollar/Swiss pair could break below a second level of support or more. For more about the Swiss Franc, see the USD to CHF forecast. Kenny Fisher Kenny Fisher Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer. Kenny's Google Profile View All Post By Kenny Fisher Opinions share Read Next Forex Daily Outlook – August 25 2011 Anat Dror 12 years The Swiss KOF Economic Barometer is a composite leading indicator which measures overall economic activity and is an excellent indicator of the direction of the Swiss economy. Its publication has a major effect on USD/CHF. Here are all the details, and 5 possible outcomes for USD/CHF. Published on Wednesday at 9:30 GMT. Indicator Background The KOF Economic Barometer is an important indicator of projected of GDP growth. The index has been on a steady downward trend since May. It dropped sharply from 2.23 in June to 2.04 in July. The index has been above 2.00 since April of 2010. This… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
