Swiss KOF economic barometer 0.01 vs. 0.25 forecast and 0.34 prior reading.

Written December 28, 2011 at 6:54 AM EST by  

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Categories: Forex Trading  |  

2 Responses to “Swiss KOF economic barometer 0.01 vs. 0.25 forecast and 0.34 prior reading.”

  1. 5ko FOREX on December 28th, 2011 7:53 am

    It was not a surprise that the Swiss KOF shows that the economy is deteriorating in pace with the Euro Area and with the ever stronger CHF. However, the franc reacted positive on the news, which was expected and surged against the EUR to 1.21821. I expect it to continue to rise and reach 1.20000 within a week (or two), having in mind the worsening of the EUR and Europe’s economic situation, so I expect the SNB to intervene once again very soon once it touches the peg at 1.20000 (and why not raise the peg to 1.25000). A perfect level to go long with the Swiss National Bank behind your back defending your life savings, prepared to buy “unlimited amounts of foreign currency” and “defend the peg with utmost determination”. I would call the 1.20000 level “the investors’ dream”. Dream on.

  2. Greg Michalowski on December 28th, 2011 8:48 am

    I think all will be looking for that 1.2000 level to find support from the SNB. CPI inflation fell 0.6% last month which was much worse than expectations and the SNB does not want to see it go any lower (toward deflation). The EURCHF is finding support currently at the 200 day MA which comes in at the 1.2170 level. A move below this level could solicit some technical selling but one has to think that those traders looking for a the chance of 1.2500 peg at some point in the 1st quarter, and 1.2000 a hard floor, will be happy to buy dips and take their chances.

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