Morning Forex Fundamental: CHF

Morning Forex Fundamental: CHF

'The latest turbulence in the Eurozone and recent slight appreciation of the Swiss franc has slowed - though not halted - the recovery in Swiss economic activity' - Credit Suisse

Swiss trade surplus narrowed last month, however, less than initially was expected, the Federal Customs Office said on Thursday. Nation’s trade surplus stood at 2.098 billion francs, down from 2.120 billion a month earlier, and compared to a surplus of 2.482 billion a year earlier. Despite a decline, a reading came above analysts’ expectations, which called for a 1.870 billion surplus. A report also showed that shipments from Switzerland dropped by a real 5.3% in February to 16.145 billion Swiss francs. Meantime, Swiss February watch exports fell 2.5% on year to 1.61 billion Swiss francs, down from 1.64 billion Swiss francs in February 2012, owing to a slowdown of watch sales to Asia. A better-than-expected trade balance data as well as the fact that Swiss economy expanded by 1.0% during the 2012, are adding to signs that the economy is still gaining pace even despite deepening Eurozone crisis.

'The latest turbulence in the Eurozone and recent slight appreciation of the Swiss franc has slowed - though not halted - the recovery in Swiss economic activity,' said Credit Suisse and the SVME purchasing managers' association.

'It is doubtful that Switzerland is already on a sustainable recovery path,' VP Bank economist Bernd Hartmann said.