SWITZERLAND DATA: Q2 Flash GDP Stronger Than Expected
Swiss Q2 flash GDP (seasonally- and sport event-adjusted) was stronger than expected, at 0.1% Q/Q (vs -0.1% consensus).
- "The negative performance in industry has been counterbalanced by gains in the services sector", SECO comments.
- This follows the strong 0.8% in Q1 which was underpinned by US tariff front-running but also showed wider strength, for example in services. A final Q2 print with drivers by expenditure component and industry is scheduled to be released on August 28.
- The SNB expects Swiss growth at 1.0-1.5% Y/Y in 2025 according to their June projections. They also see 1.0-1.5% growth in 2026.
- Sentiment in Switzerland has recovered recently with the KOF barometer standing at 101.1 in July. However, the print is already outdated because it does not incorporate the 39% US tariffs on Swiss imports, which may prove detrimental for the economic outlook.
The SNB's vice chairman Martin speaks in Zurich next Thursday.
Source: SECO
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- RES 4: 0.6700 76.4% retracement of the Sep 30 ‘24 - Apr 9 bear leg
- RES 3: 0.6688 High Nov 7 ‘24
- RES 2: 0.6603 High Nov 11 ‘24
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- PRICE: 0.6527 @ 07:57 BST Jul 16
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- SUP 2: 0.6488/6373 50-day EMA / Low Jun 23 and a reversal trigger
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- SUP 4: 0.6275 Low Apr 14
The trend set-up in AUDUSD remains bullish and the latest pullback - for now - appears corrective. Resistance at 0.6590 has recently been pierced. A clear break of this price point would strengthen a bullish condition and confirm a resumption of the uptrend plus maintain the price sequence of higher highs and higher lows. Scope is seen for a climb towards 0.6603 next, the Nov 11 2024 high. Initial firm support to watch is 0.6488, the 50-day EMA.
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- DAX futures: -0.56%
- CAC 40 futures: -0.38%
- FTSE MIB futures: -0.44%
- SMI futures: -0.02%
- FTSE 100 futures: -0.25%
