A narrowing of the Swiss trade surplus in October but a record reached for exports. A healthy set of trade numbers despite a slight narrowing of the surplus. Exports rose nearly 18% on the year with imports up 4%. The Customs Office reported that exports were broad based and demand from key markets showed an increase of between 20 and 30%.
The softer tone to the CHF has clearly boosted Switzerland's trade position and this trend looks set to extend into the New Year. This said we have seen EUR/CHF back away from its 6 1/2-year highs, recorded last Friday and trade nearly a big figure lower at 1.5919 last session. For the Swiss trade position much now depends on the global economy and most importantly how the local economy faces a slowdown in Europe.
The SNB has already warned that Swiss growth could drop from 3.0% to 2.0% inn 2007 if the global economy cools. Cross action has seen EUR/CHF and edge lower, GBP/CHF climb further and CHF/JPY drift lower. USD/CHF remains tight between 1.2400 and 1.2450 with bids in the 1.2420's and stops above 1.2450-55.
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