Swiss Exports Falter, SNB Governor Roth Predict GDP to Contract 3.0% in 2009
Exports from Switzerland plunged another 5.0% in March, after falling 3.6% in the previous month, while imports slumped 4.6% from the previous month, which lower the trade surplus to only 0.12 billion Swiss Francs from a revised reading of 0.72 billion in previous month.
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CHFUSD – Exports from Switzerland plunged another 5.0% in March, after falling 3.6% in the previous month, while imports slumped 4.6% from the previous month, which lower the trade surplus to only 0.12 billion Swiss Francs from a revised reading of 0.72 billion in previous month. Meanwhile, the ZEW investor confidence jumped to -27.7 from -57.1 in March, marking its sixth consecutive increase as the policy makers continued to step up their effort to stem the downside risks for growth and inflation. Meanwhile, a separate report said SNB President Roth sees the Swiss economy declining as much as 3% this year, and warned that the nation is “not yet in the valley” as the downturn in the global economy intensifies. Mr. Roth noted that private consumption has played a stabilizing role for the Swiss economy, and went onto say that a recovery in the global economy in 2010 should help to spur demands for Swiss exports. For more news and resources, visit the new Swiss franc Currency Room.
EURUSD – Manufacturing and service-based activity in the Euro-Zone at the slowest pace in six month during April as the PMI composite increased to 40.5 in from a of 38.3 in the previous month, which exceeded expectations for a rise to 38.9. In addition, the advanced manufacturing PMI reading surged to 36.7 from 33.9, while the services PMI jumped to 43.1 from 40.9, and at the same time, economic activity in German improved during the same period as the manufacturing PMI increased to 35.0 from 32.4, while services ticked higher to 43.5 from 42.3 in March. Meanwhile, a separate report showed industrial new orders in the Euro-Zone dropped for the seventh straight month, with the index falling another 0.6% in February after posting 2.0% decline in the previous month. As result, the annualized rate slipped to -34.5%, which is the largest decline since records began in 1994, and the outlook for growth remains bleaks as the IMF predicts the growth rate for the euro-region to contract 4.2% this year. Discuss the topic and your trade ideas in the EUR/USD Forum.