Switzerland’s external trade kept on showing a decline in August, according to the local authorities. The experts say that the key reason for the key reason for the decline is a strong national currency, which makes the Swiss export more expensive and less competitive.
That’s why the external trade surplus shrank from 3.58 billion CHF in July down to 2.78 billion CHF in August. It should be noted that the decline took place as both the export and import shrank. As for the month-over-month figures, the export decreased by 2,4% while the import dropped by 4% over the reporting period. With that said, the slowdown accelerated from 2,3% and 1,8% respectively. As for the year-over year figures, the export decline slowed down from 4.9% in July to 2,1% in August while the import drop accelerated from 1.7% in July to 7.4% in August.
FOREX
Masterforex-V Academy reports that the Swiss Franc is showing short-term weakness against the U.S. Dollar due to the mentioned negative economic figures. In particular, USDCHF is currently forming an upward momentum – wave A/B of level Daily2.
More specifically, the currency pair remains inside sub-wave a(C //C of the rally. With that said, the key levels of resistance are: 0.9822 and 0.9901 - local highs - as well as 0.9955 and 1.0037 - FIBO levels. A break below MF pivot 0.9526 as well as the MF sloping channel will put an end to the rally.
