Currency Movements | This week saw small but mighty gains for the Swissie, pushing the CHF|USD pair upward to 1.0972 today (+0.22%). A combination of weak USD movement and local Swiss economic data made the Swissie just that little bit more appetizing to market participants.
KOF Leading Indicators, a composite leading indicator of Swiss GDP growth, frisbee flopped well above forecasts of 119.5, reaching heights of 134. Economic optimism in Switzerland continues to grow as hopes for a strong rebound in 2021 continue to manifest. Just a matter of time before we’re all wearing Rolex watches and sipping on espresso in the Alps.
Get Hedged! | Over the past 12 months, the CHF|USD pair has seen annual volatility at 6.67%, as seen on Deaglo’s spot history chat below. If your fund is interested in raising capital in a foreign jurisdiction, implementing a Foreign Share Class Hedging solution can lower volatility to 1.02%. In turn, this will boost returns, attract more foreign investors, and cut down on collateral drag.
Macroeconomic Data Front |
March’s Retail Sales YoY was posted today at 22.6% as we reflect back on a Covid stricken economy. Things appear to be chugging along nicely.
April’s KOF Leading Indicators surprised the market today after posting a figure of 134; forecasts were 119.5.
Upcoming Macroeconomic Data |
April’s procure.ch Manufacturing PMI (due 03 MAY)
Q2 Consumer Confidence (due 04 MAY)
April’s Inflation Rate YoY (due 05 MAY)
April’s Unemployment Rate (due 07 MAY)
April’s Foreign Exchange Reserves (due 07 MAY)
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