Swiss Franc Declines As Consumption Sputters, Trade Partners Struggle
The Swiss Franc fell against the US dollar following disappointing economic releases that hurt prospects for a near-term recovery. The most influential to the currency was the UBS consumption indicator, which showed further signs of weakening conditions. While the Swiss National Bank has been trying to stop Swiss franc’s appreciation against the euro in order to prevent deflation, the sharp decline in consumption may be signaling that falling prices may come regardless as demand drops. Meanwhile, the Swiss export industry will likely continue to experience weakness as its major partners remain entangled in their own recessions.
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