EUR/CHF Fundamental Analysis March 6, 2012, Forecast
Analysis and Recommendations:
EUR/CHF opened today at 1.2064 and is trading at 1.2059, staying within a very tight range today. Swiss retail sales were released today showing a jump in year to year figures, but that was matched by the eurozone retail release also showing upward numbers. The pair are expected to remain within this range for Tuesday and possibly Wednesday. Although the euro should pick up some strength as we get close to the March 8th deadline for Greece to avoid default. Once that is locked down investors will be less worried.
Monday March 5, 2012 Economic Data Release actual v. forecast
| AUD | Company Gross Operating Profits (QoQ) | 5% | 0.3% | 4.7% |
| CHF | Retail Sales (YoY) | 4.4% | 2.0% | 1.7% |
| GBP | Services PMI | 53.8 | 55.0 | 56.0 |
| EUR | Retail Sales (MoM) | 0.3% | -0.1% | -0.5% |
Also today In Europe
Euro zone final composite PMI falls to final 49.3 in February
Italy services PMI 44.1 in February. Down from 44.8 in January and well below Reuter’s median forecast of 45.2.
Swiss January retail sales up +4.4% y/y.
Spanish services PMI 41.9 in February. Demonstrably lower than 46.1 in January and Reuter’s median forecast of 45.9.Eighth month of contraction, lowest read since November.
Economic Events: (GMT)
Tuesday will be a very quiet day on the Economic Data Front. With little was due on Monday and virtually nothing on Tuesday. Keep an eye on Australia, where the RBA will be announcing rates.
10:00 EUR GDP (QoQ) -0.3% -0.3%
Gross Domestic Product (GDP) measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy. It is the broadest measure of economic activity and the primary indicator of the economy’s health.
A higher than expected reading should be taken as positive/bullish for the EUR, while a lower than expected reading should be taken as negative/bearish for the EUR.
15:00 CAD Ivey PMI 62.1 64.1
The Ivey Purchasing Managers’ Index (PMI) measures the activity level of purchasing managers in Canada. A reading above 50 indicates expansion; a reading below 50 indicates contraction. The index is a joint project of the Purchasing Management Association of Canada and the Richard Ivey School of Business. Traders watch these surveys closely as purchasing managers usually have early access to data about their company’s performance, which can be a leading indicator of overall economic performance.
A higher than expected reading should be taken as positive/bullish for the CAD, while a lower than expected reading should be taken as negative/bearish for the CAD.
Originally posted here
