The Swiss franc is trading relatively flat against some of its currency rivals on Thursday as some recent economic data are pushing up the safe-haven asset. While not consider the global beacon of exports, Switzerland has enjoyed a significant jump last month, helping it experience the biggest trade surplus in more than two years. With Zurich engaged in terse discussions with the European Union (EU), this could be part of a greater positive trend.
According to the Swiss Customs Administration, the trade surplus widened to $3.34 billion in June, up from $1.5 billion in May. This not only beats market forecasts, but it is also the largest surplus since January 2017. Higher exports contributed to the surplus as Switzerland witnessed an $8.5 billion spike. Imports, meanwhile, tumbled 0.8% to $8.71 billion.
Switzerlandâs $350 billion export industry is primarily comprised of machinery, chemicals, watches, metals, and agricultural commodities. The countryâs main trading partner is Germany.
In other trade factors, producer and import prices for June dipped 0.5%, which is less than the median estimate of a 0.2% decline. Year-over-year, prices have fallen by 1.4%.
Earlier this week, the Federal Statistical Office (FSO) reported that the producer price index (PPI) shed 0.5% last month as the market had penciled in a 0.1% increase.
To finish off the month, investors will now look to the Economic Sentiment Index, anticipated to clock in at 94.1. Traders will also wait for the KOF Economic Barometer, a measurement of business confidence, which is expected to read -24.
The USD/CHF currency pair dipped 0.02% to 0.9872, from an opening of 0.9873, at 13:36 GMT on Thursday. The EUR/CHF dropped 0.08% to 1.1075, from an opening of 1.1083.
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