USDCHF Swiss economy shows signs of a slowdown – 01 March 2022
USDCHF Swiss economy shows signs of a slowdown
USDCHF Swiss economy shows signs of a slowdown. The USDCHF pair shows a downward trend, trading at 0.9181. The franc resists the growth of the dollar, although investors perceived the latest macroeconomic data from Switzerland as contradictory.
Thus, the national economy shows a slowdown: according to January data, quarterly GDP rose by 0.3% after increasing by 1.9% a month earlier. The negative dynamics were also reflected in the annual rate, which reached 3.7% instead of 3.8% a month earlier. Meanwhile, the index of leading economic indicators also lowered the Swiss Economic Institute (KOF): the February figure was 105.0 points against 107.5 points a month earlier. Strengthening of positions was demonstrated only by the January retail sales volume, which increased to 5.1% after falling by 0.5% in December.
The index of the US currency began to decline slowly after yesterday’s trading reached a yearly high of around 97.350. Investors fear that unprecedented economic sanctions against Russia could harm the global economy and provoke even more disruptions in the supply of raw materials and goods than they were during the peak of the incidence of the Delta strain of coronavirus. Today, February data on the state of the US manufacturing sector will be published. The business activity index may rise to 57.5 points from 55.5 points a month earlier.
Support and resistance
On the daily chart, the price moves within the global side channel, gradually approaching the support line. Technical indicators remain in a state of uncertainty: fast EMAs on the Alligator indicator is close to the signal line, and the AO oscillator histogram stays close to the transition level.
Resistance levels: 0.9220, 0.9370.
Support levels: 0.9155, 0.9080.