Swiss Franc Mixed As Machine Export Orders, Producer Prices Drop

The Swiss franc is mixed against a basket of currencies on Thursday as new data show machine export orders and producer and import prices declined. The Swiss economy continues to lose momentum amid the global trade war impacting markets everywhere. Despite the downward trends, investors are still pouring into the safe-haven asset, much to the chagrin of the Swiss National Bank (SNB).

According to the Swiss Federal Customs Administration, machine and electronics exports declined by 2.2% in real terms in the third quarter. This is the fifth consecutive quarter that the nation’s machine and electronic exports contracted. The last time they rose was in the second quarter of 2018.
Analysts fear that this is another sign that the country’s economic momentum is dissipating. Switzerland has been subjected to the international trade strife weighing on the global economy, which is poised for the weakest expansion in a decade.
The Swiss Federal Statistics Office reported that producer and import prices tumbled 0.3% in September to 101.4 index points. Year-on-year, producer and import prices have fallen 2%.
Meanwhile, the nation’s trade surplus widened to a three-month of $2.92 billion in September, reports the Swiss Federal Customs Administration.
On Saturday, Swiss voters will go to the polls as the nation holds a federal election. The surveys suggest that the Swiss People’s Party, a conservative political party, will form a minority government. The Social Democratic Party, a democratic socialist entity, and the FBP Liberals, a conservative-liberal hybrid, are expected to hold the next most seats.
The USD/CHF currency pair tumbled 0.79% to 0.9871, from an opening of 0.9952, at 16:45 GMT on Thursday. The EUR/CHF declined 0.29% to 1.0986, from an opening of 1.1019.

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