The Swiss franc was very soft today after the downgrade of Switzerland’s economic growth outlook. The Swissie fell against major rivals and lost earlier gains versus commodity currencies.
Switzerland’s State Secretariat for Economic Affairs downgraded the outlook for economic growth in 2019 to 0.8% from 1.2% in the June forecast, though the outlook for growth in 2020 remained unchanged at 1.7%. The report talked about outside risks to the economy, like the US-China trade conflict, the Brexit, and the negative outlook for the economy of Germany — Switzerland’s important trading partner. The outlook for the Swiss economy was not rosy either as the report said:
The outlook has become gloomier for the domestic economy too.
USD/CHF edged up from 0.9927 to 0.9933 as of 15:19 GMT today, though the currency pair has retreated from the daily high of 0.9968 and is currently moving lower. AUD/CHF was at 0.6808, near the opening level of 0.6813, bouncing from the session low of 0.6775.
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